There is little need for an in-depth analysis of the Thanksgiving day loss to USC. When the team with the superior talent plays its "A" game, it usually wins. As much as people like to criticize the "star" ratings of the recruiting services, USC demonstrated what a team full of 4-star and 5-star recruits looks like. Could ASU have played better or done some things differently to pull of the upset? Sure. But if we played that game 10 times, USC would win at least 8 of the games.
The main thing that this game proved is how insane USC's loss to Stanford was. If they had won that game, they would be right at the top of the National Championship conversation.
I don't see this game as a setback for the program. "Reality check" would be a better term. We can't get to the next level until we get more studs on the roster. What happens next February on signing day will have far more impact on the program than what happened on Thanksgiving.