I think Manchester City will still become the champion. After the failure, they are likely to be quite active again in the transfer market and will be more balanced along the lines this season.
Nothing is impossible especially in football but this particular one you said and with what they are playing now I mean there performance, it is somehow impossible to achieve that. The only thing I can tell or say for sure is that no matter how bad there performance is they will be among top 6 in the premier league table. Last season they almost back out of this position but they later bounce back and started winning there match, Manchester city is a strong team and what they need now is change of pattern in order to grow and definitely they will because Pep Guardiola is a nice coach and if not for someone like him by now Manchester city would have been thinking on how to sell him.