Madrid is still a good team but the fact is you don't win always and anceloti is one of the best coaches but this season things didn't go their way because even the arsenal side that got them eliminated from the competition is not even in the finals injuries too played a big role in Madrid problems this season
Real Madrid is still very ok for now, despite that their have failed to achieve a lot in this season, and even the past few seasons, reasons for that is not far fetched, since Real Madrid like other clubs have hard there good time in the past, what make real Madrid own case very different is that, Real Madrid started the season so well and almost topping the la Liga series before their eventually started dropping in points, coach have nothing to do with this situation since Ancelotti took over the club, it hasn't really been that bad, but just that they have failed to achieve that level of success.
Ancelotti managed to win with this team so now that he's gone he deserves a bit of respect, because he's a great coach and he should be remembered as a winner, things were definitely going badly in the last period, but it's certainly not just his fault.