to be honest I'm not that sure with City being that good as many others like you think... yes they play a great season and lead the PL with ease, but lets see how they roll in the CL, especially in the knockout stages against a good team.
Also knowning Guardiola in his times at bayern, his teams seem invincible in league matches, but when it comes to the CL, its just another story, PEP does not adapt or change his tactics, he wants to play possession football, no matter what happens, he rather loose playing possession football, then changing his tactics and adapt to the opponent.
I see this whole City hype with other eyes, I see it as a bayern fan who watched Guardiola 3 years in charge at bayern and the fact that his stubbornness especially in the later stages at the CL cost us reaching the Final... but you could argue that with city he has a complete different team and we cant compar this city team with his Bayern team, and yes maybe I'm bit biased because of our experience with him as a coach and he will progress with city in this competition... but I wouldn't be surprised if Liverpool manage to get a decent result tonight and knock them out next week.