I love it how many on this thread think that this is all part of his coach's plan and that he's waiting for the olympics to peak. Razco's plan may have been to have Webb at his best come the olympics, but that would probably mean running 3-5 seconds off your goal time right now, not 10. Every other experienced athlete (Bekele, Lagat, etc) is running well right now, even if they aren't at their absolute best.
Others are saying that Webb is just a poor racer (which may be true), but racing had nothing to do with yesterday. Webb did not get destroyed because of bad tactics.
Bottom line is that something went wrong in Webb's training. He probably put way too much pressure on himself in the olympic year(see male Suzy Hamilton posts) and trained way too hard. My guess is his coach had to completely back off for a while to recover and they are just starting to round back into form.
3:55 is a decent time and if him and his coach are smart, he can probably get to 3:51ish shape in a few weeks and that will put him right there to make the team. Then it will come down to his tactics and kick. He will not run away from the field like in the past.