It looks Ferrari and Schumacher may have dug themselves a pretty deep hole by introducing their 2005 car at the Bahrain Grand Prix(maybe they were in such trouble anyway that it didn't matter). A calculated risk that didn't pay off it seems. The car was almost fast enough but just not reliable and since there is no going back (at least not without further penalty), they are stuck with what they have. Unreliablity in one race has a negative impact on qualifying for the next race (and if severe enough to force an engine swap out may force a back of the grid start).
Already far behind in the points race(not as bad as BAR mind you) and seemingly a large number of cars competitive at the second tier(Renault looks clearly far in front of the rest), it will be very difficult for Schumacher(as good as he is) to win his 8th championship this year.
P.S. Did I mention that Villeneuve sucked ? Maybe time to hang up the overalls?