I think he's still rounding into top shape. It takes a while , sometimes a year, to recover from a major injury. With that said he's only got so much left. If he can get a little better than he's playing right now and depending on the match-ups, I think we have a real shot at a tittle this year.
What major injury? As far as we know, all he had was a sprain, and some bone spurs in his knee. He had minor surgery to remove the bone chips.
KG is not (supposedly) recovering from a torn ACL.
To me, it is one of 3 things:
a. They lied to us about his injury
b. KG just has had terrible luck, and has had several, unrelated, injuries on the same knee over the last year and a half, and he is still trying to work back from that
c. KG is just getting older, and the wear and tear on his knee, has made his knee prone to injuries to that knee, and he keeps having setbacks, mainly because of the mileage he has on his legs catching up to him.
Personally, I think it's "c". Basically, he is turning into Chris Webber or even Arvedis Sabonis. He just needs to accept it, and move on to that part of his career.