They did have a better OVERALL squad last year. I don't think any non-Barca, non-biased fan would oppose that argument.
Their bench is almost an all star bench. They could field a second team that could challenge for the La Liga and probably be in the top 4. Can you say the same about Barca?
The thing that makes Barca so amazing is the midfield and the attack is some of the best in Barca's history. It's almost as if this team is in a league of its own, and it's very hard for Real Madrid, no matter how many Euros they spend, to flat out be better than us.
Yes, results do determine the better squad. Just look at the Clasicos last year. They just couldn't keep up with the marathon that is the league to actually get the title, it doesn't necessarily mean that they were that much worse than Barca.
You're a good poster but come on man, this means NOTHING. We've seen this play out plenty of times, heck, we saw it play out with their galactico that was assembled 4 years ago. Kaka,Benzema, all these star names. All its won them is 1 major title in 4 years.
This season they've bought young players that have been very good off the back of an U21 tournament (which is far off the top level), with the exception of Isco who isn't as good as the key player they replaced him with (Ozil). In general, these players are not as good as the players that they're supposed to be replacing. Modric and Illaramendi or any of their midfielders without Alonso will get dominated by a good number of teams.
You talked about Neymar, Messi, Xavi and Iniesta being out. If you lose 3 of the 4 best players in the world then of course the team will weaken severely. If they lose Ronaldo, Xabi, Isco and Bale who do they have to replace them? Heck, they look think as all hell in attacking midfield now that Ozil and Kaka(rubbish as he was) are gone.
Barca still blow them out of the water in terms of midfield depth, in terms of quality and numbers. Iniesta has been so so this season and no one has noticed because Cesc has filled in perectly. Our captain and best defender was injured for the whole season last season and still won the league by 15 points. The attack is probably about even or they might edge it slightly, but not enough to cover the difference in the midfield.
Their supposedly amazing defensive game has yet to show its class in the 4 years they've set their team up. They concede more than Barca every time, despite the decline in Barca's defensive game over the past couple of years, doesn't say much about their defensive game does it?
I completely disagree about them having a second team that could challenge for La liga when they're first team couldn't challenge for it last season and their first team this season is getting outplayed by decent but not amazing teams. There is absolutely no basis for this, I respect you as a poster enough to know you aren't basing this off "star names"
Madrid are like the Chelsea of La liga,(except they haven't even won as much as Chelsea over the past 4 years). At the start of every season they're going to crush their rival (United) with all their new shiny signings but in the end, United seem to prevail more often than not.
All in all, I think you're underrating the quality of this squad(relative to madrid) if you think they have a better squad. Because that assertion is based on nothing tangible.