There's nowhere else for him.

It's really a bit of an ego thing for him. And I use that term loosely because I don't think he's arrogant. But I do think that it's important for him that he is recognized for his great accomplishments. So when he's 7th in Ballon D'Or and left off of the Fifa World 11 he's right to be frustrated. And while he knows that accumulating trophies is the best solution, he also knows that contracts reflect a certain recognition of his greatness and importance to the club. But you could double his current salary (which is roughly the same as VVD's new deal) and he'd just be making the same as KDB - who is one of several City players making more than every Liverpool player.

But you're right, he's at the best club to maintain his elite profile and he's loved. He doesn't drink or party and he's not looking for the glamorous nightlife or lifestyle. He wants to win and be recognized. But to compensate him close to his peers would entirely smash Liverpool's salary structure.