Liverpool are old news they have been knocked out by the better team it does not mean much that they could not win the 2nd leg and only drew. They did enough in the 1st leg and decided to take their foot off the gas and rest but do enough to win the 2nd leg. I do not think we should read into them not winning the 2nd leg they are still the favorites for the Champions League and one of the only teams that have big experience in winning it left in the competition.
Liverpool have yet found a good way to beat Real Madrid. Under Klopp era, they were beaten by Real Madrid many times and they failed to change it in this season. In the first leg, they brought big hope with two early goals but later they lost a match control to Real Madrid and ended it with a big failure 2 - 5. That mostly marks the end for Liverpool even before a second leg with which they again were dominated by Real Madrid.
Chelsea will be the next English team knocked out and Manchester City will probably be the only English team that has a chance of winning the competition.
I don't think we should consider Chelsea too weak. They know what to do and in the past they won two Champions League when they did not have best seasons. With knock-out format, everything can happen especially with Chelsea that have enough many star players.
I hope Real Madrid wins they are the best team in the competition and they have the best atmosphere and the most experience which I think cannot be underestimated.
Real Madrid are strong and most experienced so a perfect final match for this season would be between Real Madrid and Napoli. A final between a most successful and experienced club and a most interesting underdog after many years.