It's based on more than recent history, though. It's also based on current finances and, looking ahead, potential for growth.
There are at least 7 teams, possibly 8, who are way ahead of us on both these measures and other teams whose current budgets are healthier than ours. Barring the odd Leicester or Forest having a cracking season, financial clout is the best predictor of league position. It has almost zero to do with how good we were for a few seasons 40 years ago.
Any Blackburn fans who said they weren't satisfied with finishing 7th in the Prem and not winning a trophy because they were the best British team for a year in the 90s and were a good team in the 50s would rightly be derided as lunatics.
We have a rich history, but it's history and it isn't a reasonable standard by which to judge what this team should be capable of. I regret it as much as you that we lost our way in the 90s, but regret doesn't alter the truth.