It doesn't seem likely but I wouldn't count Atletico out as title contenders with 23 rounds left. Especially looking at how we threw away 10 points advantage in 4 games last season we should be carefull with writting anyone off with more than half of the season still to play.
La Liga is tougher and more equalled this season than it was 3 or 4 years ago so both RM and Barça will continue to lose points. Yes, there is small margin of error for Atletico from this point on but if they can get on good run of results I can see them coming back into title race. Not really likely they'll overcome RM but they could come back to that 4-6 points range behind them where you should still take them seriously. I think they'll try to make a comeback over the next two months before CL continues. If they won't get closer to RM in that time then I could see them focusing more on CL.
That said, their focus should still be finishing in top 4. Looking at the table, there is only 5 points difference between 4th Villarreal and 12th Celta so if they won't find their form quickly they could also have problems for top 4 finish. I don't see teams like Eibar, Las Palmas or Malaga to keep up for the whole season but Villarreal, Bilbao and maybe Sociedad, Celta or even Espanyol (as much as I don't like them) should all be in contention for European places, possibly also for top 4. I still think the quality will prevail at the end and Atletico will finish 4th or maybe 3rd (depending on Sevilla) though.