I see Real Madrid improving under Xabi, their game is starting to use a system rather than relying solely on individual skill, and that's a good thing for Real Madrid heading into the new season.
Regarding the defeat to PSG, that doesn't mean we should immediately judge Xabi and compare him to Ancelotti, which would be unfair. It's only natural that Real Madrid lost to PSG. PSG already has a solid squad under Luis Enrique, while Xabi is still very new to Real Madrid. So, I see the vision Xabi brings, I'm confident Real Madrid will be stronger next season, especially in the Champions League.
Xabi was getting good results with Leverkusen, and he did that with good tactics, not with
big names. And he is shifting to do the same with Real Madrid. His strength was never
star power, his strength was almost a
structured system which works. He was still new with Real Madrid in the Club World Cup. We cannot blame him for trying things. He did work with a flexible back-three setup, hybrid wing-backs like Alexander‑Arnold and Carreras, structured build-up from Courtois. He likes to have control. They lost against PSG, which was probably very unexpected. But towards the start, a coach needs to have some losses to actually understand what he is doing wrong. Now he understands more about how the team is going to work. This will make Real Madrid much more stronger in the Champions League and La Liga as they know what are some things they need to work on. Given enough time, Real Madrid is probably going to be A force to be reckoned with, again.