Kind of - but to play Devil's advocate it could also be that the EPL is becoming more competitive throughout. I know that Manure are running away with the title - but they are managed by possibly the best manager in history.
I'm in the camp that says that as far as this season's CL is concerned, its something of an aberration - a couple more years of non-CL quarter final participation is required before judgments can be made. Yes the Bundesliga is becoming better - and the Germans have deliberately planned for this, but with the money in our league, let's wait for a little longer before passing judgment.
I am inclined to ignore Wenger's transparent attempt to put us on a par with our more illustrious EPL rivals - as I ignore everything he says these days. He is nothing but a politicking weasel with his constant PR speak - and I'm bored with it. He shouldn't lament the falling standard of our league when he has done more or less everything he could deliberately to weaken his own side.
A few more points.
Re Wednesday's game - I can understand totally those who are completely ambivalent about the result - and agree that in the context of our general decline and the unlikelihood that it will change anything going forwards it means nothing. Personally, I drew satisfaction from the fact that we weren't made to look like chumps as I had predicted, (and I'm with Terry in this regard) but its really sad that the way in which our club has been run and managed for years has resulted in many Gooners being unable even to enjoy what was a good one off result.
I disagree that Bayern handed the win to us, for the reasons that have been given, but also because football doesn't work like that. If one team is under-cooked, or has the wrong mental approach (which BTW I do not accept Bayern were) then that's all part and parcel of losing a game - as much as being bested in pure playing terms. We won the game because we scored 2 more goals than them, and kept a clean sheet. Again, its sad that our disgust with our team generally now prevents us even from praising a performance - it has to be because the other team threw the game. Do people think Bayern fans felt the same way after the first leg? Do people think that Blackburn fans felt that way after their FA Cup win against us? Of course not. They would have taken pride in their team's performance. Oh - and if we had played a game with as many shots as Bayern had on target and not scored, but they had scored with 2 out of 4 attempts on goal, we'd be slagging off our team - not praising the efficiency of the competition.
I am far from happy with what is happening at AFC - but the carping can go too far sometimes.