Barca established themselves as the leading side on the planet during a stunning run of success that saw them win 14 trophies in four years under Pep Guardiola.
They also look poised to reclaim the Primera Division title this season in Tito Vilanova's first campaign in charge, but while the club may be top dogs in Spain, they no longer appear to be the dominant force in Europe after being humiliated by the Bavarians.
However, although Xavi concedes Bayern were a class apart in sealing their final spot with a 7-0 aggregate win, the Spain international still sees a bright future for Barca.
"I think so, yes. There's no need to be drastic. The team has a future, we've competed very well up until now. I'm always optimistic and this team has the desire," he told Canal Plus.
"We've not been able to get through the semi-finals of the Copa del Rey and Champions League (but) I think we have the team to carry on.
"On Sunday we have another competition."
Barca could replace Real Madrid as Spanish champions this weekend and their players are now focusing on that match in a bid to banish their European misery.
Midfielder Cesc Fabregas said: "The players are hurt, we have to react and win La Liga as soon as possible.
"We went up against a very strong Bayern, their counters with (Franck) Ribery and (Arjen) Robben were very hard to stop. But we are Barca, we don't make excuses."
Defender Dani Alves added on his club's website: "We have to thank the fans for their support and promise them that we will return
"The fans understand football and they know that when you get knocked down you get up and you keep on fighting.
"We still have that hunger to keep on winning and the fact that we were eliminated in the semi-finals proves that. We don't make excuses. If your opponent is better than you, you get eliminated."