The main problem isn't with the PL spending all that money, it's with almost everyone else not having any money.
They've literally had the most money collectively in the last 20 years but the only times their league shone was when everyone else was piss poor, literally.
Late 2000s and late 2010s/early 2020s, where the extension of this is mostly due to covid as the Rest of Europe was actually recovering financially till March 2020.
It has become the priority league for kids who grew up in the late 2000s and have those memories of the last Mourinho/Wenger/Ferguson battles and they have had the hype machine to keep these people clung on even if the Spanish league was heads & shoulders above it.
The PL still hypes the fuck out of itself and their fanbase hates on every player that's not there, till they join their league and suddenly the same guys that sucked are top 5-10-20 player in that league
Guys like Haaland, Salah, Luis Diaz (during his first 5-6 months), De Bruyne (Chelsea/PL reject), suddenly Ruben Dias became a top 3-5 CB in the world when no one knew about him till City announced his transfer, Bruno Fernandes (Serie A reject), Bruno Guimaraes (excellent player but everyone slept on him till he turned Newcastle around), Cancelo was hardly rated now you hear he's the best RB even if he plays on the left, Alisson suddenly became a top 2 GK in the world despite being a top 3 GK in Serie A for a few years and everyone knew about him, yet Ederson was rated higher by PL fans and pundits because he had already moved to City, despite the fact that Ederson was never ahead of Alisson with the national team and many other examples.
It's honestly one of the easiest top 3 leagues to break the barrier of Top X player as a new entrant, yet we've been hearing for 15 years how it's home to the best players in the world, yet every year there's a new sheriff in town that two years ago was considered a nobody or just overrated.
On the other hand, you cannot do that in Spain. In Italy, individual talent isn't as appreciated unless they're pompous fucks, so it comes as a surprise to people that Serie A players that move to the PL (or elsewhere) and become instant hits. Anyone thinking that Barella or SMS moving to the PL doesn't instantly make them a top 3 central midfielder over there has no idea of what he's talking about, for example.
It's just how their league's marketing machine works. And it works.
The absolute best still do not apsire to play in the Premier League, unless it's an odd case like Haaland who was born in England and his dad played for City. He still probably wants to play for a greater club.
Real Madrid remains the benchmark, there's Barcelona as well and honestly playing for PSG is still more appealing than people think. And once Inter, Milan and the gobbi cunts recover and can manage to throw money at people, they'll be getting better players for less money than the PL top clubs are forced to pay these guys.
What actually is happening is that SOME of the top PL sides are actually hoarding a lot of the great 2nd tier talent. You cannot stack teams with 1st tier talent even in this day unless you're Real Madrid or PSG. They're not a bunch of difference makers but having an entire lineup of these guys + 1-2 top top players means you're not risking irrelevance. That's where the issue lies with PL money, and lots of these players are genuinely wasted.
The other issue is the fact that individual talent is declining, so very good players are becoming more rare and you have more system players. An average player will be hyped in a great system (ie Jordan Henderson, Trent Alexander-Arnold, Raheem Sterling etc) but won't necessarily perform the same in another team.
So having the money allows you to get the players that would perform everywhere. That's your Bernardo Silvas, your Ilkay Gundogans, Fabinhos, Son etc kind of players that indeed are more frequent at the top 3 PL sides (City, Liverpool, Chelsea) that pay and have another appeal, than your Barcelona and Bayern these days.
And honestly, apart from Cristiano Ronaldo, Varane, Casemiro, Perisic, Lukaku and Haaland I cannot think of any other high profile transfer imports by PL clubs. Don't tell me Sancho... And the first 5 are just pure name value, they were hardly world class at the time of transfer with the exception of perhaps Cristiano, who causes other consequences to a team.
You can talk about smart moves like Luis Diaz, Martin Odegaard and so on, but that's where the difference is. They're becoming good at buying the 2nd and 3rd tier players that could potentially be extremely good, but they're never pulling the 1st tier players.
You will never see a sea of [think of them in their prime] Messi, Cristiano, Mbappe, Benzema, Lewandowski, Luis Suarez, Ibrahimovic, Griezmann, Modric, Neymar, Kroos etc line up for a PL job. Some may end up there circumstantially, but that's not where they want to be spending their best years.
And this will only change if the rest of the world is in a crisis. Either a financial or a qualitative one in terms of football. And we're close to a lack of top quality in football.
Premier League is just fantasy land and unless you buy into that hype, you're going to see right through it. And if you know the sport from within, you know that it's just a very relaxed environment where the appeal comes from wanting a pressure-free environment so from a professionalism point of view (and thus, player development as a part of it), it generally lacks and is detrimental to competitiveness, despite what the media would have you believe for 20+ years now.