He's adamantly sticking to his style of play, which can be (and has been) extremely rewarding under the right circumstances. However, this is not the league for it, City don't have the players for it (Gundogan would have done well, but he's injured), and his transfers haven't worked out (Bravo is poor in the PL, and Stones is shit defensively).
Pep needs to do some serious thinking about his philosophy, if he doesn't adapt to his players and the league, he'll be out of CL next season.
Obviously, I hope they go down the same path, and Pep leaves them for a team more suited to his demands.