I see the hot discussion of Real Madrid - Chelsea match-up. I think today's El Clasico loss was bad for Chelsea. Because now Real Madrid have no chance to win La Liga, they have to go for Champions League trophy with full focus.
Real Madrid still shown their dangerous performance in Champions League this season even they got troubles in La Liga. Especially now as you said, they are going to fully focus on Champions League. With a few more matches left in Champions League, their star players including old players like Modric, Benzema, Kroos will contribute their best to shine and win the title, a sixth Champions League in their career if they make it. They know at their ages, this season can be a very last time they can win it.
Courtois wanted to avoid Manchester City and Chelsea. Sure everybody would prefer Benfica, Inter or Milan. I think they should be thankful they didn't draw other big teams. I'd put Chelsea fourth place after these three mentioned team. This round may not be that difficult for Real Madrid, who eliminated another English club Liverpool. I can't say same thing about their possible semi final match-up though.
It is naturally to prefer weaker opponents than strong ones but I see Real Madrid have no issue to play against any big club in Europe. They can win or fail but they always have good confidence. Those clubs should have more fear when face with Real Madrid as they will meet a most successful club in Champions League.