I don't understand why you say he lost touch with reality? I think he's being the same as he always is. A bit weird but with some punchlines here and there. Avoiding all difficult questions, like politicians always do.

Losing touch with reality would be saying "Yippi, finally a hafway legitimate chance to get Crimea back, let's go and "liberate" it and to heck with the West and lunatics in Kiev... and let's pick up a few cities in West Ukraine on the way there."

That's essentially what the Western media is portraying that he did, even though it actually hasn't happened.

Maybe I am less critical of him because I don't have to live in a country ruled by him... or because I like some aspects of his style.