Now obviously Arsenal should be able to improve from where they are but to get back to expecting to qualify for the CL and challenge for major titles? I actually think Arsenal are now in a position where they're going to struggle to ever get back to the top table, at least without a manager coming in and working a miracle.
This Arsenal squad needs major surgery and there's so many challenges preventing or at least making it harder for them to carry it out. There has never been a worse time to shift overpaid duds and Arsenal have a lot of them to shift. Their strategy of giving out big contracts to aging players is going to come back and bite them on the arse because they won't be able to shift them and they'll also be the benchmark for all new signings contracts. Financially Arsenal are gradually being cut adrift too. As of this season (with or without covid) Arsenal's revenue is approx £200m less than Liverpool, City & Utd's, around £100m behind Chelsea and around £50m behind Spurs (£100m+ if Spurs make the CL next season and Arsenal don't).
Arsenal can't buy their way out of trouble. It's going to take a sustained period of making clever decisions and good management for Arsenal to build their way back up and it's difficult to see that happening when they've had 5+ years of poor decisions and management.