They still should have beated Serbia at Lisbon.
Idk but i don't remember Portugal dominating good sides, I've only seen them dominating the likes of Ireland and Luxembourg(who are very bad), whenever they face a decent/good team they struggle so much to control the game.
I even remember them at WC struggling against Morocco and Iran, they were one header away from getting knocked out by Iran at the last minute.
They certainly look very disjointed, and not even close to take advantage of the quality they have on the pitch.