It’s also the balance that the FIA has never managed to maintain to anybody’s satisfaction.
A lot of the issues with F1 stem from the fact that it’s actually two seperate competitions. If you let constructors build the fastest car that they safely can, then two bad things happen. Firstly, the fastest car will win. Secondly, the teams with less money can’t compete. The F1 brand is about having the most technologically advanced cars, but really it has to constantly hold the best teams back in order to keep things competitive. That’s why the regulations are so hopelessly complex (this years new regulations have to cover up the holes in last years poor regulating...), and it’s why anything that is truly innovative is nearly always instantly banned.
F1 is constantly swinging between a state of dominant constructors (Mercedes the past 6 years), and being more like a spec series (the new 2021 regs). If F1 wanted to actually live up to its brand, it would let the constructors build mostly whatever they wanted to. But if it did that, it would also have to divvy up the prize money more fairly to keep the lesser teams from going under, which it’s never going to do because of how political it all is.