I think Man City is also in the title race, however the next match between Arsenal vs Man City would be a decisive match that would determine the likely winner of the league between Arsenal and Liverpool because if Arsenal wins that would limit the chances of Man City but if Man City wins that means the three clubs would continue to fight till the last day of the league considering the small gap in points between the three clubs, though I quite agreed that the present Man City is not as formidable as the previous season squad but we should also give the club a chance too.
Of course Manchester City are still in the race and even they are a favorite team based on Sportsbook predictions obviously Sportsbook has a reason why to favorite Manchester City, but yeah as you said we have to wait for the match between Manchester City vs Arsenal on March 31 the results of this match will determine who among those who are closer with the title. Indeed, so far Arsenal is the most consistent team for winning 7 consecutive matches but here Manchester City should not be underestimated, especially when they play at home.