TSM are not down and out yet, just off to a bad start.
I think they all are at fault for the loss. Yes Dyrus did not help a lot, he was focused very hard early on and completely was shut down. However, I believe that TSM as a whole need to work on team comp strategies. They chose all short range champions with little AOE damage vs a Darius, Azir, Kog'maw, Alistar, and Rek'sai (i am aware that the last pick was not theirs to choose but Darius was first picked and they picked right into it). 4 champions deal damage up close and personal (top,jg,mid,sup) and Vayne is easy to kill when no one can peal for her. AP burst won't work late game as much and with the current meta of more tankier champions (Darius, Alistar, etc.), assassins are really weak.
In my opinion, I think that the best comp for them would have (some of these might not be possible for worlds but it would be interesting at least):
-
If possible get
maybe (idk the reason for the 100% ban but i assume they all think he is too op) -
Dyrus on a champ that has good DPS but also some sustain or poke
and maybe... maybe
or 
-
Santorin on a champ with good ganking and semi-tank like

-
**Bjergsen **on someone who can go heavy AP but not rely on squishy opponents for his kills

-
**WildTurtle **on a champ who deals damage with basic attacks and does not sacrifice their kit

-
**LustBoy **on someone who is all about either AOE cc or high AOE DPS

(I am not sure if he can preform well on
in the support role with out the help from his team)
In my opinion I do not think that these champions should be played by TSM right now (not all champions included, just general ones played by TSM):
,
(maybe mid),
(if you had to only),
(no one is doing well with him),
,
, and
(unless the team is centered around it).
I've been salty enough in this post so on the plus side TSM as a team seems more unified as a team than they did in the summer NA split. They even were ahead pre-20 minutes and since they also are in a very challenging group, props to them for that. If they could round out their rough spots (like getting caught out of position, blowing everything on the bait, or misreading the situations) then they could be a strong team. Their individual abilities and skills are passable or better and they don't struggle a lot in team fight. These are all communication based issues so that makes it easier to fix. Hope they win game 2.