The gap between City and the rest is still massive. And again, Kane had no chance of going to City this summer. Winning the Premier League wasn't an option for him. No English club could even guarantee Champions League football for him.
Going to Bayern is obviously the best move at this stage of his career. If he wants to make his mark at the very top level, he can't afford to wait and hope that some project club gets its act together in time. He needed to go to a side that is ready to win here and now. If City had been in for him, he might have chosen them over Bayern. But with Haaland there, this was the smart decision.