I would say definitely yes. Firstly the two major signings in Marquinhos and Cavani have made a difference. Cavani didn't start off well but has picked it up now and seems to work well, and Ibra is Ibra. Lavezzi's been much better than he was last season. And the CB pair is class. That's a brilliant spine to have and I expect them to comfortably win the league, despite Monaco being a threat.
There has been a difference in the quality of the buildups from last season as well, and they look like having more ideas than previously when a few times they were shut down by teams parking the bus. Having Cavani means that Ibra can play off him and show the creative side of his game as well, and it allows him more freedom. Width is still a bit of an issue. I like Blanc as a coach, he is decent and solid but nothing extra ordinary. I expect him to make the back 4 solid but on the other hand in a big European game he might fall short of ideas.
As for their chances, I think they can reach semis given they continue this form. Think they edge City and Chelsea on paper and not far off from Madrid. I agree that it would be good to see Ibra get the CL KO monkey off his back even though he has improved lately.
It really depends on how the key players do in that stage. Not just Ibra, the likes of Verratti, Matuidi, etc who have been very good so far need to step up against top midfields or else it will be Ibra or nothing. Though Cavani can also be a genuine matchwinner.