Top 4 is definitely an expectation now, I think. It's tough to win the title, so getting within a few points is always good, as far as I'm concerned. Domestic cups aren't to be prioritised until we're out of the CL, at least. It's a question of balance, and unfortunately they've been relegated to the sort of status they enjoy in many other European countries. Lose an FA Cup final and you're over it quickly nowadays, narrowly miss out on the league or CL and it's in the pit of your stomach for a lot longer.
Fall out of the top four - particularly due to a porous defence - and it would be time for tough decisions regarding the management. I don't think it will come to that unless we really cock up and lose key players this summer.