Well yes. But as an urban tram system for a compact city centre. I'm not a regular traveller on it, but I would guess that it works less well as a regional/suburban rail network. Paradoxically something like Metrolink would be better suited to Merseyside, and a Merseyrail type network for GM.
If the system is only good for serving a compact city centre, then I don't see why you would conclude the system is good enough for Liverpool versus Manchester. Liverpool's city centre isn't compact, but fairly sprawling. And its suburbs perhaps more extensive than Manchester's. Surely serving any large city with trams alone isn't ideal?
Metrolink isn't perfect, but I don't think it was ever expected to be, instead it has worked as something that can be developed over time.
It reaches reasonable speeds on dedicated track, and delivers people close to where they want to go. And it is in addition to a comprehensive railway network.
It is the case that local rail connectivity has played second fiddle to national rail connectivity, but that's an entirely local choice. Manchester has been completely in control of not just its own lobbying positions but also listened to to the extent that no one else's has mattered.
It's not the wrong equipment that causes severe congestion in Manchester, it's wrong decisions.