I honestly believe that we deserved to win Champions League up 'till now. Still, a lot of money was invested and it was returned in silverware. So, my answer is no, we didn't underarchieve.
You do realize that last season City had conceded the least amount of goals as us? They've got a pretty good defense and with YToure and De Jong in font of it they are a very tough team.
Latest reports say that it was a concussion, that he was taken of as a precaution and that he's feeling fine now. They are gonna take him to a CAT scan just to make sure.