Here's the thing that many Yankee fans overlook though...this time last year, they had a positive run differential and really s***** bullpen performance. They were awful in close games. All they needed was a Joba-type pitcher to assume the 8th inning and to have Mo revert back to his norms and wins would begin coming (let's not forget the Yankees had a cakewalk of a second half schedule).
This year, the Yankees are playing in a vastly improved division (Rays? Orioles 4 games over .500??) and they really are playing to the level they should be (right now). Their pitching is a huge concern, run prevention will hold this team back all year and I really don't see them going 70-47 the rest of the way (which they need if they want 90 wins). 75-42 seems way unlikely at this point (for 95 wins).
Their offense will get better. The lack of production from Hughes and Kennedy has killed them and will continue to do so. Yankee fans seem to be pinning their hopes on "a magical run", spearheaded by guys like Darrell Rasner (or Horne or MucCutcheon, etc.). I see this team improving, but it will be VERY difficult for the Yankees to catch the Sox.
Lucky for the Yanks they are still VERY much in the WC race because I think the Tigers are done, so they'll have to beat the As and the White Sox for the WC spot, teams I think the Yanks are superior to.