I don't think that's true though, at least not this year. Separation this year has generally either been "within 1 second, or about 20" and seems to be every other race.
I think the closest gap this season has been ~.5 seconds, but many races have been somewhere between 5 and 20 seconds. And that's only considering the podium spots. Generally we see the top 1-3 teams dominate, with the feeder/mid pack teams all being 20+ seconds behind. Look at Azerbaijan, 4th place was over a _minute_ behind first place.
I love f1 but it's been many years since I've felt like the sport was truly competitive. This year is way better than previous years now that Mercedes isn't in a rocket ship, but it's still just a Ferrari Red Bull battle (with Ferrari reliability and management biting them in the ass race after race)
The first competition is the obvious one: The drivers all want to be the fastest driver and get the most points in the driver's championship. The second competition is similarly obvious: The constructors all want to have built the fastest car, and get the most points in the constructor's championship.
But crucially, these two competitions can't exist without each other! The drivers can't be fast if they have a good car, and the best cars won't be fast unless there's a driver who really understands how to wring the most performance out of it sitting behind the wheel. So there's this constant (and in my opinion, fascinating) tension where the constructors are trying to build a) fast cars, but also b) cars that their current drivers can effectively use and the drivers are trying to a) drive the car fast but also b) find the constructor who will build a car that can go fast and is suited to their driving style.
In other sports there's some amount of equipment preference (e.g. different golfers have different brands of clubs, different tennis players might use different brands of rackets or different shoes), but the equipment manufacturers aren't literally competing with other manufacturers - they're just trying to supply an industry.
So if you give everybody the same car, then yes - it becomes a transparent display of driver skill, but that doesn't necessarily make the race better, because now you've lost half of the competition. F1 (and motor racing) history is full of bits where somebody managed to figure out something neat about aerodynamics, stuck a new part on their car, and then _lied to everybody else about what it was_ so that nobody would be able to figure out why their car had gotten so fast; the ground effect lotus '78 comes to mind, as does the discovery of the gurney flap.
People building the car, supporting the race, strategy, supporting the teams building the cars, the drivers, etc.
Some teams have over 1000 people behind them and you can see weaknesses and strengths in those teams across a number of areas.
It is, in fact, a team sport. Man + Machine + Engineers!
I think the new rules on budget are a great way to recalibrate the sport.
I'd watch that movie.
Having had the lucky opportunity to work as an engineer on projects with nearly unlimited budgets, it was shocking to me how little having unlimited funds really helped... I often felt a nagging feeling that I could have done nearly as well with a small budget. Perhaps money can buy creative solutions for the person with the money, but when you're the engineer they hired, that's not the experience you have. Money can also hire the "best" race car driver, but when you're that driver, you then have to figure out how to drive even faster... the money doesn't drive the car.
edit: you might appreciate 24 hours of lemons - a car race with a $500 budget limit https://24hoursoflemons.com/
And more to the point. As Italian I can't care less about the drivers. All I want to see is Ferrari winning. Who drives it is an implementation detail, human, AI, remote control, it's the same.
But when teams get closer on performance, there's some aspects that are particular to it, like one car adapts better to a kind of circuit than the other, and this makes the championship swing for one side or the other.
There's a kind of charming on not having this general equilibrium (that we see in many American sports). It much like La Liga or Premier League, where you have always 2-3 front-runners and the rest seems just acting in a supporting role.
If you want to "get it" go to the F1 subreddit, if you like data analysis you'll like it.
The design and build and strategy are as important as the person controlling the robot.