Euphoria? Translation "there's not enough people flapping about this and we should be because... it''ll help?" There's no dipper like delusion here mate, too many flappers and doom mongering for that to take hold.
We can play better but we were the better team, regardless of the possession stats the fact is we won the midfield battle for the majority of the game at their own ground. Their front 3 were in our defenders back pockets, whether they are out of form or not our defenders can take confidence from having got one over on them regardless. When a defender has an off day, the attacker draws confidence in the same way, so why shouldn't they?
More tellingly Ederson was not tested at all and Alisson was, not enough I'll grant you but he had to be sharp when he was needed. We should have had at least 1 further penalty possibly 2. So although we didn't create enough chances by our own standards if any team deserved to win, it was City.
As for the rest of your post I don't see anyone writing them off but for once we came away from Anfield with our heads held high, it would have been great to win but it's progress none the less. What's wrong with seeing it as a positive?
To be fair it's true they have had a tough run of fixtures, part of that is their own fault for finishing 4th last season, in the league were this matters they've played 3(Spurs, Chelsea, City) of the top 6 and we've played 2(Arsenal, Liverpool).
Aside from that however the excuse for their attack looking blunted being down to a tough run of fixtures doesn't hold true if you'd actually watched enough of their games vs Palace, Brighton and Leicester. They weren't that great and were perhaps lucky to come away with the points I seem to remember. Some games have required fortunate decisions on the way to getting those points, like the Palace game for a very weak penalty(we've had 3 challenges more worthy waved on) even the game against Tottenham(which Liverpool were the better team in) could have ended in a draw had Son been awarded the penalty.
Have you considered:
The fact that Liverpool are getting credit for simply adding a plan B against the smaller teams, while Pep and this team have shown the tactical flexibility and the know-how that the red side of Merseyside and their coach could only dream of having. Teams are looking out for the City fixture pouring over hours of video footage but we are showing we can adapt to what most teams come up with and then they normally revert to type(park the bus and hit us on the counter).
Mendy and Mahrez not fully up to speed, to where the rest of the team are with the system and what Pep wants from them,
The dippers midfield can't hold a candle(no pun) to ours even at full strength and ours hasn't been at full strength for quite a while. KDB our talisman of last years record breaking season still to come back,
Bernardo Silva getting better with every game, he has shown he can rotate with KDB and Silva keeping them fresher than we've been able to do in the past, this could be a massive difference in itself,
Our young CB pairing is looking stronger every game, coupled with Mendy getting up to speed equates to a defence that can and will get better as the season progresses and the stats aren't too shabby as they are,
Gabby Jesus still to find his scoring boots, some remain unconvinced with him but I still maintain the floodgates will open, he just has to have that one game where everything goes right for once, no offsides, finds the top corner without thinking about it etc,
Sané being eased back into the fold, finding form now and I fully expect this season to eclipse last years. Sané, Mahrez, Jesus 3 players yet to hit anywhere near their peak form with City already top of the league 8 games in. Quite some potential for upping our game don't you think?
Liverpool more scope and potential for upping their game than City? I don't see that at all.