There are lot of points here in a bit of a mixed order to my understanding but I'll try to make my point.
Real Madrid have a big advantage when it comes to attracting players that neither us, nor anyone else really bar maybe Barcelona can compete with. They are the most prestigious clubs in the areas of the world that produce the very best players. The Ronaldos, Messis, Zidanes, Ronaldinhos, ... that caliber of players usually has Real or maybe Barcelona as the ultimate destination. Look at Haaland now, the plan for him long term is to end up there to cement his legacy. Bellingham is an English jewel, a generational talent and he sees Real as the place to be to reach individual and collective heights. How many equivalent Spanish players will be dreaming of any club outside Spain? We were streets ahead of Real in the late ´00s and yet they somehow had Cristiano Ronaldo and Kaka itching to join them. How many players run their contracts down like Kroos, Alaba or Rüdiger for the chance to play for club that is not Real Madrid? And to a lesser extent, how many players take pay cuts the way the Barcelona players did recently? When a player of the caliber of Mbappe wants a move, there is only one realistic destination and that ain't England or Germany or Italy. That's a long history of being looked at as the place where you win CLs and Balon d'Ors and where the biggest legends of the game have played. No one in England can compete with that.
The managerial comparison is not about what is better. It's about knowing what is needed at each stage of a club's development. If you have enough individual quality and a winning culture that runs through the club to achieve the club's ambitions, a facilitator that come in and just make marginal tactical tweaks while providing the big egos in those teams with the perfect platform to "do what they do", is the perfect appointment. Examples of this would be Chelsea hiring Ancelotti to lead a generation that knew exactly what they're about from the Mourinho years, Bayern appointing Ancelotti after Pep to bring his CL knowhow and of course Real appointing Ancelotti and Zidane.
If you are however a club that lacks said culture and trying to build from a lower point, that mentality and vision has to come from somewhere which is what City found in Pep and Liverpool in Klopp. If these guys enjoy more respect within the footballing fraternity, it's probably because it's considered generally a rarer talent to give a club an identity and clear personality, to be a builder in other words. Their qualities would be wasted and even clash at a club like Real but likewise, an Ancelotti or a Zidane (jury still out on the latter) are not people that will build from a lower point of a club's development, hence Ancelotti's relative failure with PSG, Napoli and Everton.
There is an argument to be made that Ancelotti could have been a great appointment for us in 2013. If our senior players had enough quality for another 2 years for one last hurrah, we certainly still had a strong winning mentality running through the club, he could have probably been the wise old head to steer to squeeze the last drops of that team. We don't have that now, hence a builder is what is needed because we're certainly not getting that mentality from anywhere else.
