I think he's in with a good shout yeah. Xhaka came with a big reputation. He has never, not even in isolated games, looked like the player he was advertised to be.
It's possible for a lot of people to be wrong at the same time, and maybe that is the case here. There were a ton of fans and pundits who vouched for him. Xhaka wouldn't be the first one unable to replicate his form from a weaker league; they spoke of Anderson like he was Ronaldinho mk II in Portugal and about Salomon Kalou like he was Henry's heir when he was playing for Feyenoord, and I never saw 90 good minutes of football from either one of them in their entire Premier League careers.
Either way Xhaka has become a symbol for our inept scouting at this stage. We spent a ton of time and money watching him across multiple seasons, we held off on replacing Arteta for years because Wenger was obsessed with finding "the right quality", and then we ended up getting it wrong anyway when we finally moved on a target. And now we're stuck with a malfunctioning midfield because we almost never shift players when they don't work out. There seems to be some weird three-season rule to our transfer business.
The single biggest argument for getting rid of Wenger last summer wasn't that we dropped out of the top four. It was so someone else could come in and kick all these underperforming players out the door. Our squad is a mess because we've rewarded them with new deals and playing time for years. The fact that Xhaka still turns out for us every weekend is just the insescapable conclusion of this attitude. He would have been way down the pecking order right now at any other big club in the country.