Funny, Manchester City has only had just one bad season in over a decade now and all of a sudden Arsenal is now superior to Manchester City in recent time, like how? Manchester City still stands a better chance than Arsenal and if they fullly come to form, then definitely they will be the favourites to the title, it's been proven over time that Pep's City in full form has no rivals in the league.
If it were in the past 10 Premier League seasons, I would agree with you that Manchester City would stand a better chance than Arsenal to win the Premier League title next season. But with the performance of Manchester City in the just-concluded Premier League season and the quality of players Arsenal has signed this season, in my opinion, Arsenal's squad looks sharper than Manchester City's squad, and I see Arsenal beating Manchester City and Liverpool in the race of the Premier League title next season.