*Note using a narrow strata formation when trying to break down a narrow strata formation is probably the dumbest thing you can do. *Cough Cough Leonardo.
Heres why. Narrow strata formations focus on crowding the center of the pitch. When your attacking your goal is to create alot of space this is usually done by expanding your playing area. To expand your playing area you need wide players. Or really aggressive attacking fbs. This is why inter started to have better play after eto moved wide in the palermo game.
Any way this is why i choose the 4-2-2-2(Villarreal style) formation to combat palermo. With your 2 aggresive wingers and 2 strikers you can really strecth Palermos back line.
Right now its 4 vs 7 the real attacking threat comes when your fullbacks push foward. This will make it 6v7, but this isnt a numbers game. If you play a fluid front 4 with 2 fbs coming foward to maintain the width it wont matter that palermo have an extra man you will still tear them apart. Sorry i dont think this can really be explained in words just watch villareal play(my second favorite team in spain). The way they move the ball and the general movement of the front 4 is unbelievably devastating.
How to break down rigid defence
You should really look to move the ball quickly keep the tempo high to ruin the defensive organization of palermo
Also you should play with alot of width to create optimal space for your attackers.
I know this is short compared to the defense article, but good defensive organization is hard and detailed; good attacking play is very easy. Create space, ruin the defensive organization of the oppostion, and exploit the weaknesses of the individual defenders.