I think Real Madrid should focus more on chasing their domestic title first, then they can pursue titles outside of La Liga. Barcelona already won La Liga last season, so now is the time for Real Madrid to win that title again. once they can secure the domestic title, they can focus on chasing titles like the Champions League, etc. because right now the race for the European title is fiercer, and if Real Madrid can't prioritize what they need to get, then last season's results will repeat themselves where they failed to get any title.
Just one bad season from Real Madrid and you think it is best for them to focus on La Liga only. We understand Real Madrid are finding it difficult to cope with the squad but have in mind they are still one of the best clubs and will remain.
Last season isn't going to justify what will happen for this season, Real Madrid have the squad only lacking a bit of composure within themselves to return back to their best form and if they do, it will be a nightmare meeting them in any Champions League draft even PSG will be facing same problem as any other team.