That makes the difference clear.
However, Poch says Football is fluid. Liverpool finished below us 8-10 seasons (?) before last, so it is not helpful to suddenly cower beneath them mentally (not saying you are, but most seem to perceive them as out of sight). Though the gap was big, we had a smaller (quality) squad with a fatigued core, this fatigue should now be resolved (or equal to peers), plus we have signed 3 first team squad players (2 first teamers).
KWP and/or Foyth are both capable of having Robertson style breakout seasons.
We should have enough to bulldoze more teams this season I hope, giving the squad more minutes, keeping us fresher.
Get Eriksen a new contract and I will believe it could be our year (if we remain undefeated after City).
This season could be our best shot, if we keep Toby and Eriksen it will be very difficult to improve next season (replacing two like those leaving on frees).
Brian Clough got Notts Forrest back to back European Cups, Poch has performed miracles with 'top of second tier' players (on the whole), let's see what he can do with 3 of his choice (NDombele, Lo Celso and Sessegnon were all his picks, and top picks it appears).
Leicester won the PL so anything's possible. I agree with your point that this may be our best team for a while (if Eriksen runs his contract down) with him and Toby halfway out the door. And I definitely agree that we can't be mentally cowered by City and Liverpool. Which I'm not worried about--our team has shown itself to be very mentally tough.
Something magical will have to happen at RB for us to be a contender though. Along with of course a lack of injuries, our new players bedding in and contributing at the level we hoped for, etc.