It will not be that interesting if Real Madrid leaves UCL in this early stage, but don't you think that it would be good news for other clubs because the mighty has fallen. However, I don't think that it will be possible for Real Madrid not to qualify into the next round, because I believe Ancelotti will take this match very serious and his players very personal. When it comes to very important matches like this, Real Madrid knows how to smuggle their way out to victory. But the problem now is that will Liverpool fold their arms and accept defeat at home.
Let's say Real doesn't make it into the top 8 and they have to play preliminary playoffs. But what place do you think they will take? If 9-10, then they will play against the team that took 23-24 place. If 11-13, then against the team from 21-22 place, etc.
It depends on the results of the remaining 4 games. A win is needed to improve their ranking in the standings, but the problem is they will face Liverpool in the next game. If they lose at Anfield, they will fall into the relegation zone. They will also face Atalanta who are in top form, Madrid chances of getting 3 points are very small because Atalanta have been impressive and very productive this season.
What are the chances of Real finishing so low that they will get a really strong team (+ which will have two lucky days haha)? I think this probability is measured in a few percent.
In my opinion, Madrid chances of finishing in a better position are very small based on their performance and the opponents they face in the next 4 matches.