I don't think they will medal in the ice dance event (although I will be happy if they do). But 4th-6th place at the Olympics and then a medal at Worlds, SURE! I also hope that the Russians will put them in the Olympic team event. :yes:
I believe they have a good chance. They received steadily higher PCS score from event to event than their main opponents last season (except, maybe, the Shibs), and their FD is finally likable for the general public (and hopefully the judges). Their SD is not something out of this world, but still pretty solid. So why not? They need to skate clean, of course, and they're perfectly capable of it.
As for the team event, I'm 99.9% sure they will be on the team. Russia wants to win it, so it will be stupid if they will not put their strongest team in the mix.