This whole club suffers from the disease of "lack of accountability". The board and owner are not strong and demanding enough and so Arsene doesn't have any pressure or accountability. Arsene himself is not a strong enough character and therefore the players feel no pressure and so again, no accountability. It's as simple as that.
Another thing, I have had enough of players coming out post game and apologising for their performances. The whole point of an apology is to admit you have made a mistake but more than that, to say that you have learnt something from it. If you are going to keep making that same mistake time after time, your apology is worth nothing.
As for the whole contract situation, given the history of lack of courage and accountability at this club, I don't think any announcement will be made till the end of the season. It's quite obvious that the board knows his decision, that he is staying. There is no need to announce it to the world cause they don't really give a fuck about the fans. As for the players, the board and manager are naive enough to believe that they are professionals and therefore should operate like professionals, even though every game is proof that the players simply aren't doing what they should as professionals. God help this club, this board, this manager cause they are fucking clueless.