How much can Google really understand content?

I’ve read many comments on this sub about how Google understands your content and ranks the best content, and the only way to rank is have the best content etc etc.

Firstly, just want to say that I truly believe the best way to rank is have the best content. But that’s just common sense.

If you have a website, and you don’t want to have the best content, then you probably shouldn’t bother having a website.

But how much can Google understand and rank content on quality?

I don’t see how Google understands irony, humour, metaphor, context, infographics, sarcasm or countless other variables that humans understand effortlessly.

And if Google does understand each page so thoroughly, and can identify which links are paid or natural (as many people claim), why bother with schema?

If you have to assign topics to pages, and tell Google if your page is about a recipe or an event, how much do they really understand?

Not as much as people think I believe.

Thoughts?