Eh, this was a league-winning squad and you don't turn into a crap team overnight. Fatigue and injuries plus COVID have doomed the season. Klopp's system requires energy and fitness. City are the richest team with the deepest squad. On paper they should be the favorites to win the season, especially if you factor in Liverpool's drop-off in form started a year ago now.
Man Utd are still a team of individuals, less than the sum of their parts, though they are probably the only other team with a shot now. The Frank Lampard experiment was ultimately a failure. Arsenal are still trying to find their feet post-Wenger, and Spurs are a past-it Mourinho team dependent on one player. Leicester are also too dependent on one player and Everton are Everton. Everyone else has too shallow a squad.
That pretty much just leaves Man City. Not guaranteed, I agree, but looking very likely now. Liverpool still have a decent chance in Europe if they can find form, and of course can also play the role of spoiler in the league.
BUT the 2021 MLS season starts up next month (the league and players' union just finalized a CBA) so hurrah!