I would say that Real Madrid's performance last season was terrible because they were barely able to win any other title apart from the Copa Del Rey. Real Madrid failed in La Liga, they failed in the Spanish Super Cup, they also failed in the Champions League and it was a big blow for a team that was the favorite last season.
Last season Madrid played badly, that is a fact. I think you need to admit it even though some of your explanation about other teams are true. Real Madrid and all the La Liga teams that will play in the Champions League next season will return to zero, even for Manchester City who are the reigning champions.
Real Madrid were supposed to bring some significant titles to Santiago Bernabeu, but they failed to do after recording more performance. Perhaps the club is getting prepared for the UEFA Champions League next season, this time they will give it their best. Last season was a complete disappointment for the Los Blancos, they didn't got the deserved accolades in games and also were completely out of the race for the La Liga competition. It was really a tough one for them, however Carlo Ancelotti still have everything under plans, he will look forward to strengthen the club and move them into another new dimension next season.