It's a tricky topic. In Portuguese we have this saying, what came first? The egg or the chicken? Does his current band have more room because they are better than Dire Straits or because Mark can no longer do what he did back in the day forcing the band to step up? In my opinion, a bit of both.
Mark's stated several times he's done with the guitar hero thing. It's comfortable for him to let the song breath through other instruments and take the back seat every now and then during long gigs. He didn't do it as much back during the DS run for two simple reasons. First because he loved being a guitar hero, that's a pretty obvious one I guess. The second one is a consequence of the first one: the line-up. From LOG onwards it gradually changed though. When we got to the OES tour DS was pretty much like Mark's current band, with Alan Clark, Paul Franklin, Chris White and Phil Palmer doing a lot of soloing. Even Chris Whitten and Danny Cummings had their moment to shine in Calling Elvis.
Going back to Alchemy, Telegraph Road was way more intense, complex and dynamic then than any version played by any line-up Mark's had in his solo career. And just for the record, Mark's music as a whole is far from complex, the arrangements might make it look like it is but in fact it isn't - which is a great thing. For instance, you can choose a pretty raw song like Where do You Think You're Going and make it sound grandiose if you want as well as you can make Speedway at Nazareth or Marbletown sound fairly simple. What I disagree the most with is to say his current band is better than any DS line-up when instruments, music style and Mark's approach are so hugely different now. Remember what Chuck Ainlay said about DS when he remixed Alchemy? Mark's always been surrounded by awesome musicians that served their purpose at each stage of his career.
To me the incoherence begins when someone (I'm not pointing fingers at anyone, just to make it clear, just a general observation) claims that Alan Clark just played what Mark told him to in Telegraph Road but praises the current band for raising Mark's game.