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For starters, I think Manchester City are very much beatable at the moment based on the fact that they are rebuilding their team and some big names have left the club who we all considered instrumental to their success, but with them leaving this could be their only weakest team!
I disagree with you. Manchester City is still favourite to win the league because Pep has an almost unchanged squad. Gundogan is the player whose absence would be greatly missed, he was their captain and was carrying the team on his shoulders in every games. Another player being rumoured to leave is Mahrez. He's been restricted to the bench, and sometimes when he comes in he produces something spectacular but I don't really see how his departure would affect the team. Pep is also recruiting good players to strengthen the team like the acquisition of Kovacic from Chelsea and Josko Gvardiol from Leipzig, so they still pose a threat to other teams.
Well Man City remains a strong team. In fact, there are actually no major changes in the composition of the Man City squad this season compared to last season. So I don't think Man City's performance will decrease. And it could actually have increased. Gundogan had indeed left. But many other midfielders can replace his position. Although not as good as Gundogan, Man City still has very high quality players compared to players owned by other teams.