Then tell me which team other than Liverpool has been able to perform optimally. Manchester City is out, Real Madrid had to play the playoffs, Juventus Turin is out, Atalanta is out, AC Milan is out… there are a lot of clubs that haven‘t played optimally, which makes it quite a level-playing field. Liverpool is the favorite this season, but I think a lot of teams have chances.
Seriously speaking, this season champions league is complicated with the kind result we've been witnessing in every game week and it doesn't matter whether you are performing optimally or not. Most predicted favourite teams are struggle and end up playing in the play off and still the assumed weak teams eliminate the supposed strong teams. Bayern Munich hasn't been in their best form but they're not doing bad in both competitions compared to other teams that have been eliminated. Liverpool seems to be the only phenomenon club with a good and clean record but it is hard to conclude them as the favourite team to win. Just like you said, every team has a chance at the moment until they're being eliminated.