I believe Arsenal will still beat the odds in other games ahead and make this season worth the while much more than they had last season.
But it's not more valuable than a runner up position. What I mean is, the first meeting between Liverpool and Arsenal already showed Arsenal's failure to at least avoid dropping points. This defeat has reduced their chances of winning the title at the end of the season. Overall, I believe Arsenal can still finish the rest of their matches well, but Arteta's squad has already dropped crucial points against a direct rival. So I can say for sure, Arsenal have failed once again this season.
Arsenal's performance against Liverpool wasn't much different from Liverpool's own. Both sides countered each other's attacks with fierce intensity. However, Liverpool were able to capitalize on their chances better, ultimately resulting in a 1-0 defeat. However, I can understand Arsenal's loss, as Liverpool, as the home team, naturally had more confidence going into the match. Perhaps Arsenal can avenge their defeat when Liverpool play at Arsenal's home ground in the second leg later this season. So, a 1-0 loss isn't a major setback. I think Arsenal still has hope even after this defeat.