Frankly, it's more a case that writers don't understand their own characters. Nothing to say of power levels - plot determines that. Kind of like in Final Fantasy, where Meteor fucks up Golbez in the cut-scene... but when you actually go to fight against him, it does all of jack. Or... you know... Aeris/th, the Phoenix-Downer.
Hinata has the Byakugan and one of the largest stated visible ranges with it. If terribad things are going down with relation to Boruto, Naruto, Himawari, etc - then she has all the justification, right there, to get involved in whatever it is - if not already be on top of it. She's not the strongest fighter, but that is also a grave misunderstanding of what the Gentle Fist and Hyuuga theming are about.
In a series where the only way the writers can think their way out of blowing up planets due to power creep is to reboot to the children, I suppose it's par for the course. However, it's frustrating that there is a rather obvious solution to the problem in the Hyuuga, fuinjutsu, and genjutsu. These are all mechanisms that can act to subvert neanderthal happy hour, but they are never utilized for such. The big bad is immune to any kind of genjutsu that isn't so broken it requires virgin sacrifices (or something of the sort) to function. Sealing jutsu almost never works (except for the... whatever that was at the end), and the only time the gentle fist mechanics were actually applied to the story was when Hinata went up against Neji for it to be explained. Once Naruto realized he really didn't want to lose, that whole mechanic got thrown out the window and we never looked back.
The last truly interesting fight in the series (at least until Boruto took a nerf bat to everyone because they're kids) was Sasuke versus Danzo, where we actually saw an interesting and intelligent ploy using genjutsu. That is the element of Naruto that was lost somewhere along the way - the ploy to use Naruto transformed into a shuriken, the genius play of Shikamaru versus Temari (and how even though he lost, he was still promoted), etc. It was these nuanced performances which made the series enjoyable to watch. Hell, even Hinata's not-fight against Pain had the possibility to be intriguing had she been allowed to succeed and free Naruto (which was her goal). Instead, even that was robbed as Naruto just said "I don't accept that outcome" and all of the rules that held him at a disadvantage a moment ago disappear.
It's all devolved into a glorified dick showing contest where the one with the biggest after the pants are dropped wins. There may be an attempt at a little technique or finesse in places, but it's all rather hollow when few of these are allowed to succeed in their own rights. Not every fight has to be about defeating the opponent. There are many other goals that can allow a character to succeed and neither be 'fodderized' or 'solomaster'.
Of course, the kinds of plots we see are the ones that are easy to write and storyboard.
