Klopp built a record breaking world class team thats having the best run in EPL history thus far in the season. Thats why the points gap is so huge its not because City is in free-fall or is crap.
City is still a very good team with a very bright future and every chance of winning titles this season and next. For the last 2 years, it was City that was considered unstoppable, breaking all kinds of records and to a great extent that is still true. He proved people wrong already when they said he wouldnt win the EPL and that his style will fail there. He is the only coach since Ferguson to win it back to back, and if he stays he will likely regain the title next season or at least it will be a much closer challenge.
The magic has not disappeared at all. He is in better standing now than he was when he left Bayern.