Yes, they were utterly disgraceful in that final (on that night), but that doesn’t represent their level. They were chasing a historic treble, and the way they bottled the league probably hurt them too much and screwed up their final. Other than that, their Champions League run was impressive (they defeated Arsenal, Bayern, and Barça).
But I agree they are aging and have just lost their manager, replacing him with a novice. They certainly can’t win the Club World Cup. Still, they’re the toughest possible opponent compared to the other alternatives in this part of the bracket (Dortmund and River). I just meant we need to beat Juve, so we should take this relatively easy route to the final. Inter being the strongest in this half just underlines how easy it should be compared to the other route (Real + Bayern or PSG).