I don’t agree that there is such a talent gap between Citeh and the rest of the big teams in England that they are basically unplayable.
Guardiola has them playing like a well oiled machine though so he is getting the best out of his talent, sort of like Conte with Chelski last year after the formation change.
One thing Guardiola has always been really good at is reinventing players’ positions to get more of what he wants on the field. Wingers and midfielders become fullbacks, midfielders become central defenders, number 10’s become number 8’s, Lahm even became a holding mid. Wenger did that a little bit earlier in his Arsenal days, Petit from left back to holding mid and obviously Henry from winger to striker come to mind but nobody has done it like Guardiola IMO. That allows them to get more on the ball talent on the field at one time.