Confused!

Okay, My week-end wasn't that good (I lost some sleep on something). My theology was challenged!
I am still confused. Everything started from listening to one of the podcasts over at Free believers network. Here is the link to the podcast: What about sin?. Listen to it, if you would like. (I agreed to everything they said except one thing which really confused me) Here is my confusion:

I have always thought in my mind that Christ's sacrifice was to satisfy God (His anger on sin). And so it is called propitiation. From that, I get a picture of a perfectly just and rightfully angry God who couldn't leave sins unpunished, so He chose His own son to pour His wrath on.

But the verse which confuses me is this:

"Sacrifice and offering you did not desire, but a body you prepared for me; 6with burnt offerings and sin offerings you were not pleased. - Heb 10:5-6 (quote from Psalms)

Does this mean that God did not require or desire a sacrifice, but Christ's blood was offered to Devil? Bible also says, 'Christ offered himself as a ransom'; ransom to whom? Could this mean that Devil possessed the ownership of humanity (due to sin) and Christ offered His own blood to Satan in order to purchase us back from Him?

Sorry If I am not making sense. Though I believe in the unconditional love of God (in the light of gospel), back in my mind, I had a picture of a wrathful God. It came from Old Testament (sin offering, blood shedding, killings etc). I had always thought that God desired all those, but the picture Darrin gives is that God didn't require it but He was stopping the sin/devil. Darrin used (in the podcast) the illustration of a bear(sin) coming to attack us, Christ giving himself to the bear so that it won't attack us. He referred to the Narnia movie in His comments as well where the lion (Christ figure) gave Himself to the witch (represents Satan?).

Any thoughts? If I put my question into one statement, It would look something like this: Was the sacrifice of Jesus (or the sin offering in OT) to satisfy God's wrath?