If we look at last two games of Liverpool and Arsenal, Liverpool has won both games while Arsenal has a loss followed by draw in last two games. Liverpool knows they will lift this season trophy unless they play very silly football in their remaining games. Liverpool has lost only one game this season and it's very unlikely they do mistake of losing three to four more games. The best Arsenal can do from here is to finish second in this season, as they have missed the chance of winning the title.
Arsenal have ambition to win Premier League title because in many years, they did not win a single Premier League title. They came closely to the title last two seasons and this season is a third season they are competing for it. Difference between being ambitious and being able to make it done, is big and Arsenal in my opinion will have to accept this big difference that causes them a title in this season.
It's true that I also see that if, for example, Pep Guardiola is fired, it will definitely make many other teams want to have Pep because his performance is good and he has a history of always bringing good results, of course he is in the spotlight of other clubs so Man City would certainly be a shame if they let him go. Yes, with City's new players, certainly for next season, I also see better potential because the new players will definitely be used to it. and of course City's victory in their last match against Tottenham, I think is proof that City has risen.
Pep Guardiola already built up a very strong and dominating Manchester City in Premier League. If Manchester City fire him, many clubs and coaches will feel very happy with this decision. There is no guarantee that if Manchester City keeps Pep Guardiola, they will dominate Premier League again or just no more domination but still manage to win Premier League titles sparsely.