The takeover was ment to benifit MB's parent compay's bottom line. They were tired of losing money on Mercedes cars. From a technoligy side MB wasn't expecting to get anything from Chrysler. You have to understand the mentality of the german engineers at Mercedes. Anything they hand down to the poor backward Chrysler guys is to be viewed as a gift from God!
Technoligy going up stream? Yeah that will happen when pigs fly.
I think what they were expecting was to take all of MB's old stuff, and re sell it under Chrysler. Hence the 300C which is pretty much a cheaped up W210, or the Crossfire which is an old SLK with a different body. This would allow MB to build a car, sell it for 6-8 years, then give the design to Chrysler to sell for another 3-5 years. Since MB's stuff is so advanced they can get away with this as they have shown.
Since profits of the Chrysler division have been poor as of late this move is expected, Chrysler was bought as a cash cow and it doesn't produce. Expect a sale or a major reorganization.