I think Barbara was going with the "this is the best you can get in Canada, so let's be happy you skated clean and got over 200". However, I felt they were lowballed in the scores across both programs (especially in the SS mark and in the GOE on some elements - how did their spin only get +1.88?), and their tech marks were surprising low (they seemed surprised too, judging by the comments in the press conference). I imagine Barbara will be drilling them hard on the tech before their next event. Overall, they were probably always going to get silver here, so the placement ended correctly but I don't think they should've been as far as 10 points behind 1st.
Realistically, they'd have to be at their very, very best (probably coupled with small mistakes from others) to crack the top 5 at the Olympics, if all the top teams are there and are, sadly, much more likely to be 6th or 7th. Aside from any other factors, they just don't have the politics behind them to climb much higher than that. I really hope they might manage a medal at post-Olympic worlds though.
I think this was a particularly bad competition but, while the twizzle error was the main issue, it also proved they can't afford mistakes on their choreo elements as it's the massive GOE from them that partially props up their ranking. I also think that, because this free dance isn't as flashy and fun as the last couple, it's making it more difficult to cover up their lower level skating skills/tech because there isn't the exciting, in-your-face choreo.
It will be interesting to see where they end up in the fight for bronze at NHK Trophy; they'll be up against Hawayek/Baker and Hurtado/Khaliavin there.