I agree, he's still got a lot of work to do but he's moving in the right direction, looking better with each match.
Rusedski et al wrote him off before the Alcaraz match and they would have only written him off like that if they had not been watching his recent matches - Murray's level was a complete surprise to them. Tim Henman was the only one who knew Murray had been playing to a higher level recently, commenting that Murray lost to two players who went on to win the tournament and that he had opportunities in both matches, same as last night against Zverev.
For me, the next step in Murray's return from injury has to be winning 3 or 4 matches in a row, maybe even making it to a semi-final. That's what I'm hoping for anyway, he needs to start climbing the rankings.