If you go back a few years on this thread (or similar threads from the archive) you will see me waxing lyrical about Walsh as a 15 year old. He was a brilliant young player. He would absolutely run the game at youth level. There was one derby game, where we won 5-0 and could have been double that, where he was head and shoulders above his opponents. First touch, passing range, game intelligence was sublime.
The other side of all of this was a size factor though. I always felt if he made it here, it would be at probably 21. He was a tiny lad. I think you have to have a really brave and established manager to be prepared to throw a lad in, who's 5 ft 6 (now perhaps 5 ft 5/4 then) and weighs about 9 stone. The move from Martinez in an odd way probably didn't do him or any of the young players much good. The outlook of the club changed under Moshiri, it was more about instant success and power/experience were prioritised under Koeman/Allardyce for those 2 years.
I think we have to get better at sell on fees and buy backs, but in essence it's difficult. In the case of Lundstrom and Walsh both would have expired, and both moved down before coming up. What young players need is often 50 competitive games to find their feet and begin to work problems out. He is getting that now, but I'm not sure we, or most PL can really just give most young players 50 games.
The loan system is sort of a half way house. In some cases it works, but I always have my doubts as to how committed a young player is, when he knows deep down there is always the get out of going back to the PL club, facilities, support network etc at the end of it. Do you strive that bit harder, go that extra mile if you know there is no back up if it doesn't work out?
Walsh has done really well. He would do well to maybe do another at Coventry, maybe get promoted with them, and bigger clubs will come calling, as he has wonderful ability, far more so than most championship midfielders. I wish him well, but I doubt he'd have progressed at Everton.