I get the point about prioritizing, but I’m not sure that approach really works for Real Madrid.
This is a club with a history and mentality built on competing for ,,every,, trophy, not just focusing on one. La Liga is definitely important, especially after Barcelona’s win last season, but the Champions League has always been part of Madrid’s identity as well.
Yes, with Real Madrid's characteristics and targets each season, I'm not sure they'll only target La Liga. Their goal is certainly to win La Liga and the Champions League, and hopefully a treble with the Copa del Rey or something else. But what's certain is, as you said, they have a great winning mentality and spirit. However, it won't be easy, there are many obstacles and rivals ahead, and this is Xabi's big homework to make Real Madrid even stronger and more solid.