I think Man City played relatively well against Real Madrid and they held on until the last minute. Real Madrid were lucky and they won and Madrid were one of the best clubs and they had the confidence to win and they have the best players in the world. The way Man City played attacking football throughout the match, they deserved to win. They couldn't keep up that success in the second half and I think Man City's players were tired. Before the game with Real, City coach Guardiola expressed his fears and considered the opponent as the favorites and his fears were proven true.
What you said is true, in that match both teams played very well, especially Manchester City who fought hard in this match, but every gap they took to create a goal opportunity was broken by Real Madrid defenders, we know Real Madrid is one of the best clubs, the players are world class, this is not an easy match for both.
Even the Real Madrid fans who were expecting a massacre in that match must have been disappointed, because the match was very fierce, each team tried to build attacks.
Although Manchester City eventually lost, they deserve credit for their efforts, especially to the players who played in that match.