When it came to the final month we were still able to win and I think we were still either 2nd or 3rd at that point as well. The team declined in the weeks following the exit from the Carling Cup final for sure, but he is saying Arsenal are unable to do it. Which isn't true. Everyone wrote Chelsea off when they were 4th or 5th or whatever it was and they made a great comeback. Arsenal went the other way and finished 4th. That doesn't make them incapable of challenging for the title.
Going into the final month of the season you had just fallen behind Chelsea but it wasn't just that. For the previous 2 months to that you were in a huge slump; going from being in a position where if you won certain games in hand you'd have gone ahead of Utd, to being ~6 points behind them, as well as being knocked out every other competition during the same period.
It wasn't too dissimilar to the season before last or the 07/08 season(?); you challenged for the first 3/4's of the season and when it mattered you'd throw it away.