Eurovision is a popularity contest more than anything else. Daniel could have performed the best song in the contest and he still probably wouldn't have gone through. The last few years the winner has usually been a younger, in their late teens to early 20s "hot" guy or girl, because they tend to have the biggest fanbases. I didn't get to hear the song, so I can't say if he went out with a bang or if the song really sucked. A few years ago PoS were in the same contest with Road Salt, and I believe they got a second chance with that song, but they didn't go all the way.
As for the new PoS album, I will say that his comments are making me excited, and after the interest has dropped over the last few years, he is saying the right things to get me hyped. I do miss some of the classic line-up though. The new guys are fine, but there was a certain "soul" to their music when they had some of the older members. Daniel's brother Kristoffer on bass, you had Johan on guitar, and then Fredrik on keyboards. I would love another album in the spirit of BE, TPE or RL, but I don't know if the band has it in them. It really needs to sound genuine rather than trying to emulate a formerly successful blueprint, and I hope they can pull it off.