Although the 1-1 result may seem narrow, the truth over both matches is that Barcelona has been far superior to Chelsea. Although any team by now can win the competition, Barcelona must be a favourite, besides them playing beautifully.
Rangers did very well but is out after two ties. Villarreal is doing very well on their first CL ever, and will be a team to watch in the quarterfinals.
Had it not been for Werder Bremen's goalkeepers huge mistake in the dying minutes of the match, Bremen would have made the upset and eliminated the Italians. These were two very dramatic matches, and it must be a huge disappointment for the Germans. Juventus is not looking as strong as before, but can obviously go all the way.
The 1-0 victory in Madrid was enough for Arsenal to eliminate Real Madrid. The Spaniards are heading to another title-less season, while Arsenal has its hopes set high on finally making a good show in Europe.
The defending champions are out after a disappointing defeat at home, mostly characterized by great inefficiency in front of the goal. The Portuguese are looking strong, and may be on the way back to times of former glory. Don't forget that another Portuguese team, FC Porto, won the tournament only 2 years ago!
AC Milan are looking very strong, and is one of the most serious contenders to the title yet again. It is quite amazing to trash the German champions, who were looking very strong in the first round of the tournament.
After an away victory, Olympique Lyon confirmed its quarterfinal spot with a large victory against PSV. Lyon is playing very well, and this may well be their year. I would not be surprised to see them get very far, although a lot depends on the draw for the quarterfinals.
There is one match left: Inter-Ajax Amsterdam. It will be played next week, with Inter having a good result from the first match.