Federer was hitting the ball really well in patches against Marcos and Victor as well as moving well so he's not that far away. Some his FH's had some really good kick and juice on them. He had some bad returning games and lost quite a few points from a winning position. I don't think he's far off from his best game, but you never know until actually play some matches.
It was still weird for a player of federer's calibre to be so unsure in the big moments - he remarked he didnt know whether to go aggressive of passive...He needs to be match tough - to gain back the shot selection he is known for. He was hitting the ball well as you say, but he was definitely more aggressive than usual on the big pts - maybe no confidence in his consistency?
his forehand at times was really crazy against marcos but he couldnt quite get a hold of his serve which ultimately cost him in the end.