Good to see you're still watching at least some Nitro, I hope all is well.
Overall I think the new regs worked. We have seen closer following, more extended battles, bigger battles (
https://www.youtube.com/watch?v=uCcA6c0v93c&t=96s five cars battling in Austria!), and more tire limited drives based on pace rather than trashing the tires trying to attack. Being the first year of new regs, only a couple teams really got it right from the start. In reality though, Ferrari drivers and poor strategy trashed their standings, when in a well managed team they should have been closer in the hunt at the front. Merc got it wrong, but made good improvements through the year.
I don't think we can even compare to the Merc glory days. Merc won by a more substantial margin out of the gate, and it took years for any team to decrease that margin to that which RB took the WCC this year. But that was in a time with unrestricted budgets, without the wind tunnel and CFD restrictions, etc. The new format will allow the slower teams to gain ground quicker than it took place back then, and even though some of the lesser teams still aren't operating at full budget, it should be enough to help them forward. This in turn should have a domino affect.... quicker car, easier to attract sponsors as well as good drivers you can now afford due to the sponsors helping more.
I think we will still always see 2-3 teams at the very top. By nature even if all the cars and drivers were equal, those with the slight edge to start at the front are at a great advantage in terms of running their own races rather than adapting the race being run. Those very small margins add up to a big advantage, and even more so as the field tightens up.
As for driver comparisons, just like in the past we can only really compare them to whoever else is on that team driving that car. Unless all the cars come together really closely, it's hard to see where the real driver talent lives. And to some extent, even then the best drivers will work through problems, and the lesser drivers will be crushed by the pressure. Just look how badly Albon and Gasly did when promoted to RB, vs how well George did at Merc. But the trick is you can't really know for sure who is ready for the fastest cars until you put the driver in it. And at some point, the budget restrictions might keep us from seeing the really tight teammate battles at times. If you take the Lewis/Nico Spain 2016 incident as an example, they could afford for that to happen, as they had a huge budget and WCC advantage over other teams. Though that might be a freak example, I suspect that few real inter team battles will be allowed tight fighting when there are constraints with budget, and the car advantages hopefully smaller.
I'm hoping the gradual fuel changes and increased electrical energy changes don't mess with things too much for the next few years. I think we have a chance to see some real progression on tightening up the pack for a change.