Yes and no, Mercedes created the illusion of a battle in say 19 and 20 but that was fairly easy for Hamilton. As a team they have never been anywhere near as slick as Red Bull and lost out some wins to strategy, "fairness", reliability etc.
I think the 2014 Merc was even more dominant than this RB, it's just they had two team mates that could battle and they very clearly pegged the car back to not be stopped, Bahrain 2014 was genuinely ludicrous when they both went full attack after the SC and gapped the field at like 2 seconds a lap.
The current RB in race mode won't be touched I don't think, not in Max's hands, Quali they can obviously be beaten but in the race they aren't even stretching its legs.
The sport yet again is a victim of it's own ruleset, budget caps, restricted development time and innovation, dominant team that teams probably won't catch until the regs change again in 2026. The sport is ironically just going around in circles every single era. In my opinion Max hasn't had a team mate that can genuinely match up since he's had a consistent race winning car, Ric was a really good yardstick at the time but the names since then, Gasly, Albon, Perez....let's be honest, that is mid table fodder for someone like Max. I would love to see him go genuinely toe to toe with someone, we all would.