I wrote a thing elsewhere that I have basically four tiers of expectations.
There's the very top tier which is the goals that I don't expect us to reach but if reached make it an "excellent season". The sort you'll look back on and tell stories about. Which is mostly trophies, though reaching three finals and finishing 2nd or having a player break dixie's record even if we come 7th would also count.
Then there's the second tier, the sort of thing that it isn't good enough to be an end in itself, but gives you hope for the future. Qualifying for europe (especially the CL), competing for trophies, bringing in or producing world class players or managers. Achieving anything like that, would make me happy and hopeful and looking forward to next year and for me it's the minimum needed for a good year.
Then there's the third tier of aims. Which is basically if you haven't won a trophy and you haven't made it to europe and you know it's going to be a middling failiure of a season. There's still a whole bunch of aims that can make it into a fun year rather than bad one. Style of football, derby results, finishing above the RS, playing well at home, picking up a decent points total, having some cup runs, new buyes or kids who look exciting. I think we all know that some 7th placed seasons feel better than others.
And I think that's what you're getting at that it's not a good season but it's a good midtable season. But for me it's too early to say, yet. We've played some nice stuff, won a lot of games but we've also stifled our kids, not won a derby yet and had two really embarassing cup defeats to inferior teams. It's not as good a bad season for me as the fiorentina or cup final years were and if we let liverpool catch us it could be quite a bad bad season.
The fourth tier of aims is just the stuff you want to stop you killing yourself. Liverpool to not win any big trophies, not to lose both derbies, not to get in a relegation fight, not to lose your best players, not to get relegated etc. Avoiding them won't save your season but it'll stop it being completly disastrous.