So why not play him in a more advanced position? He's a good playmaker in his own right up the field. The only problem being that he'd be afforded less space and time. Wait, Trappatoni tried that in EURO2004 right? I don't remember how that worked out though..
He played kinda the same position he does for Milan in EURO 04
I believe he played the more advanced midfield position with Inter and Brescia, but it didn't work out that well for him, plus at Milan you have Kaka there. Ancelotti likes him deeper so he can spray his passes around.
Pirlo was actually very good last game, with Kaka, Pirlo, Inzaghi, and Gourcoff all in form Milan should not have a problem scoring this year It's there defending that scares me a bit, especially with Nesta and Kaladze still injured