If this isn't "in shape" then I don't ever want to be "in shape".
In the gym or regularly on the street, that's looks fine. This was a bodybuilding contest. He wasn't in shape for that contest and he LOST.
And for the nth time, that loss led Arnold to improve himself (both in size and condition) into the legendary figure that many have come to know and love.
We don't get
Pumping Iron, or Conan or the Terminator, or any of the things that have made Schwarzenegger iconic, if he hadn't lost to Zane, got humiliated, and determined that Zane would never beat him again.