They didn't exactly dominate during the league phase. Look at their 4 home results.
18/09: Paris Saint-Germain 1-0 Girona
22/10: Paris Saint-Germain 1-1 PSV Eindhoven
06/11: Paris Saint-Germain 1-2 Atlético de Madrid
22/01: Paris Saint-Germain 4-2 Manchester City
Two ways of looking at this - they're a completely different team since the group stages. They completely changed their system in December and went from being bang average to being really good. Think "Morgan Rogers on the wing for Middlesbrough", you just tweak the same stuff a bit and a couple of position changes and you've got "Morgan Rogers, one of the best attacking players in England". Nothing's really changed, but it's a completely different thing.
So looking at them being rubbish against PSV is about as relevant as us being rubbish against Monaco in January. Broadly the same ingredients, not the same dish.
On the other hand - just because they've won a load of matches since then doesn't mean they're anything to be really scared of either. Just like they're not the same team when they were rubbish in the Autumn, their recent results suggest they're probably not the same team that was smashing teams six weeks ago either.
Something I've not really seen mentioned much in the run-up to this, PSG are desperate to win this and people (after Liverpool) have started to say that they've now got the setup to win it. And this is the stage that they screw it up.
A comical quarter-final defeat to a team that everyone is expecting them to beat is exactly the chapter that comes next in that PSG story. It's like Emery's PSG smashing Barcelona 4-0 in the first leg just to concede three last minute goals and lose 6-5 on aggregate. They're the ones with history and weight of expectation punching them in the face. We just have to turn up and massage its shoulders between rounds.