Just because Phelps had one bad race doesn't mean he's finished, and it certainly doesn't mean that Ryan Lochte is a better swimmer than he is. Yes, on Saturday Phelps had a really bad showing, and shockingly didn't even medal. But he rebounded and as previously stated swam extremely well on Sunday, casting aside any sentiment that he can no longer compete at the highest level.
Could the same thing have happened on Sunday to Lochte that happened to Phelps on Saturday? Absolutely, there's no denying that. But it seems like the gap between the two is so small that a tiny swing in the pendulum is what makes the difference right now in determining who's better between them.
So, as of the morning on July 30, 2012, Phelps currently has the edge on Lochte. Could that change in the next few days? Definitely, there's no doubt about it.
But right now, the best swimmer in the red, white, and blue is Michael Phelps.