But a lot of the regulation changes aren't really about safety - things like standardised suppliers of tyres, or limiting the amount of track testing allowed. Sure, unlimited budgets would allow some companies to absolutely dominate - but that's not really any different today.
And yes Vettel is possibly the best driver. But the car and the support he gets from the team give him a pretty good head start.
F1's not about the best car you could build (or even the best "safe" car you could build), or about the best driver. It's mostly about the best car you build within the set of sometimes arbitrary constraints set by the FIA.
And best driver? Well, one guy seems to do quite well year after year, so maybe he's pretty good.
It'd be cool to see (even simulated) how a Computer driver would do.