Yes he has improved, but it is not even been a full calendar year since his disastrous performances that led to fans giving him death threats on social media and him disabling commenting on his IG. He is a wildcard player.
A year is a long time for a guy who's been to the CL final and the WC final, and playing great football along the way.
People who follow Liverpool casually and just pick up on memes think he's a trash tier player with some bright spots.
People who actually watch them play know he was getting stick (sometimes unfairly) even before the Spurs game, but Klopp dropping the fullbacks, leaving the CBs in a better position to succeed, and then VVD coming along seems to have fixed the only problem Lovren ever had - being concentrated for 90 mins.
Because he's been fantastic (not "good", much better than "good") ever since.
Even for the NT, I feel completely comfortable when he's near the ball, and he's been an absolute rock.
Despite still coming off an injury he's started the big games (when he was available) vs City and PSG - that should tell you something.
Gomez having a fantastic start to the season is just a bonus - and it's sort of a 2A/2B situation with those two.
If anything, TAA might end up sitting the big games out as things are now.
Bottom line, Liverpool will be fine defensively.
Offensively they're still sort of struggling, but Salah and Co. (when on form) are good enough to consistently create magic even if the midfield is creatively challenged.