The realistic goal for Borussia Dortmund this year would be to achieve a ranking that would allow them to participate in the Champions League. If they cannot achieve this ranking, it would be bad for them. Borussia Dortmund was a finalist last year and I don't think they are bad in the UCL this year either. They also led for a long time against Bayern but the match ended in a draw when they couldn't prevent a goal. I think it was fair for both teams.
I agree with you that they will set a target to be in the Champions League, but that doesn't mean their chances of becoming champions are gone, but with what they are showing now I personally have great doubts about them being able to win the Bundesliga title this season. Before the league started, I actually really hoped they could do their best and be in the competition to win the title. However, what happened at the beginning of this season was that they slipped several times and that made them fall out of the top 4 in the standings.