Although, PSG once beat the incredible Manchester City side of 2021 in the group stage 2 - 0, yeah at that time Mbappe, Messi and Neymar were all playing for PSG then, I think Messi even scored in that game, I really can't totally remember though. Although, City beat them 2 - 1 in the return leg. But like you said, PSG didn't dominate the match, it was Manchester that dominated even though they lost 2 - 0 in that very game. In my opinion, PSG has the tendency of going far in this season, if I'm not mistaken they might actually eliminate Real Madrid that's if both of them gets to meet in the SF.
Even with the squad quality PSG had at that time they were not playing as good as this current PSG team under Luis Enrique are playing. I also believe that if this current team are to play Real Madrid in the semi finals of the Champions League there is a huge possibility that they can win the round though Real Madrid are also very good in the Champions League so it will be a good and entertaining game to watch.
I think if PSG reach the semi-finals in the current Champions League, they will gain more confidence. I can see that PSG's squad is in good form at the moment, that's why they are preparing well to defeat Aston Villa in the quarter-finals. If PSG enters the semi-finals and faces Real Madrid, then this match will be more exciting and interesting. Yes, although Real Madrid plays very well in the Champions League, the final round will depend on how well they can play against PSG, Only if two teams can enter the semi-finals.