I remember this kind of a season from somewhere. 
There was a season in the past in which Manchester City were even much worse than this situation in the Premier League. However they still captured the league title at the end by coming from really far behind. 
Would this be another season in which they do the same?
I say why not? Because at the end of the day they still have the best squad in the league and the best manager who is Guardiola at the same time.
They are already doing great in the Champions League statistically and I believe that they will make things better soon here also.
Well you're right, about last season, Arsenal where dominating the league from the beginning of the season to midpoint and even became everyone's favorite to win the league at some point, but they bottle the league and gave Manchester City and opportunity to lift the trophy again, therefore i won't be suprised if same thing reoccur this season, cause if you look at the standings you'll see that City are not left out in the title race, there's still hope for them to win it, since the gap between them and the current league leaders is not very wide. There was a season in the past in which Manchester City were even much worse than this situation in the Premier League. However they still captured the league title at the end by coming from really far behind. Would this be another season in which they do the same?I say why not? Because at the end of the day they still have the best squad in the league and the best manager who is Guardiola at the same time.
They are already doing great in the Champions League statistically and I believe that they will make things better soon here also.
City might find it very tough defending the Champions League title but winning the EPL is not going to be very tough for them and i concour with your statement that they got the best players and manager currently, making them very strong potential winners of the EPL and sonner or later, maybe after the January window, we'll see them dominating the EPL table.