Yet another thing ruined by capitalism.
Ideally we would see the world’s top athletes participate in many separate leagues and tournaments. They would each have enough matches to root out luck but also few enough that each is meaningful and significant.
At minimum for each sport I would like to see the following tournaments/leagues.
International best on best. Players play for their home country. e.g.: Olympics
Continental or intra-national championship. People play for teams from their home country or sub-country geographic area, and we see who is best. e.g.: Concacaf
All-Star League. The best players in the world are somehow arranged into teams that all compete against each other, regardless of where players are from geographically. e.g.: NHL, MLB, NBA
Each of these should have should have versions for women, men, juniors, seniors, etc.
If each of these competitions had few enough matches per tournament/season, you could hold each one quite frequently. Any individual sporting event on TV would always be quite significant and exciting within its own context. We would also get to see who was best in various different configurations.
Right now there are a lot of sports that don’t have all these competitions. Or even when they do, they don’t always get participation from the top players. We haven’t had best on best international ice hockey in quite a few years. Many players who deserved Olympic gold medals never had an opportunity to compete for one.
Also, as you say, the top leagues have too many games to rake in cash and that makes a lot of their games meaningless as well as taking time that could be used for other competitions.