I agree with you that Manchester City is playing weaker football compared to the one they played last season. Last season, Manchester City's performance was amazing, and they scored a lot of goals against their opponents, which helped them win the Premier League trophy last season. Since Manchester City is struggling to score enough goals against their opponent, that doesn't mean that Liverpool has a higher chance of winning the league, because if Manchester City fails to overtake Liverpool in the league table, Arsenal will do that.
What makes you think Arsenal will do it? Yes, they're good now too, but they, generally like MC and Liverpool can make a mistake and drop out of the championship race. If you think about it that way, not too far behind all of them is Aston Vila, maybe they will still fight too, although I don't believe that, but anything can happen
Manchester City, Liverpool and Arsenal are all likely to drop points. The Premier League is a very competitive league. There are many teams who are capable of performing well and have strong squads. So even though Manchester City, Arsenal and Liverpool are in very good form, they are likely to drop points in the upcoming matches.
It is impossible to say which of these three teams will win the title. These teams are consistently playing well. However, if one of the teams lose consistency and lose a match, they will fall behind in the title race. Liverpool are now somewhat in the safe zone with 63 points from 27 matches. But I am looking forward to Liverpool's next match. Liverpool is going to face Manchester City in the next match.
When talking about dropping points no one is exempted to drop points. Even now the premier league competition is way tougher than i expected. We all saw how difficult it is for Liverpool to win Nottingham Forest away. That is the same situation Manchester City will find defeating Manchester United at their home. Home or Away doesn't mean all i feel is that it would be very tough for the top three teams.
Sometimes i see so many persons saying Arsenal won't drop points because they will be playing smaller teams in their next two matches but i know things doesn't work that way. They were able defeat Westham, Liverpool, Manchester United and successfully won their last 5 matches doesn't mean they win their upcoming matches.