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.
The whole messi, neymar, mbappe period of PSG was actually a good and decent one. But the funny thing is, they lost all three of them and now they are looking a lot stronger, beating the leader of group stages to come here against Villa, and most likely expectation that they will also beat Villa as well.
We are saying they are going to face Real Madrid in semi finals, but we still do not know if Real Madrid will manage to beat Arsenal. Of course whenever Real Madrid plays someone, we always assume that they have a chance to win, and this could be like we assume and Madrid could beat Arsenal, but there is no guarantees in football. The matchup could very well be Arsenal vs Villa too, who knows? But most likely it would be Madrid vs PSG.