I don't think the update will rectify anything. This is just the "look" that the iPhone has gravitated towards over the course of many years.
To be honest, apart from the confident & punchy look of the Pixel, I still prefer the iPhone look compared to almost every other phone, despite the overprocessing. Since you're coming at this whole thing with a history of 3 older iPhones and no other manufacturers, it's easy to forget the severe size limitations of a phone chassis. There is a reason that even semi-professional grade SLRs and DSLRs have substantially larger optics and internals. Phones are intensely limited spatially as computational photography can only do so much with objectively miniature lenses & sensors compared to what's on a real camera. Most android phones still have fairly substandard computational post-processing (in my opinion) and compensate with ridiculously spec'd out cameras to capture more detail instead of reading the light correctly. Apple has gone the opposite way, where it's still humble in the hardware department, but has enough R&D muscle to drive machine learning & AI research to augment its photos. Like I said before, I do think the Pixel has struck the best balance of hardware + software in terms of camera specifically, but I still prefer iOS as my overall operating system, so that's that. If i could replace my iPhone's camera with the Pixel's and still keep the rest of the phone intact, you can bet everything that that's what I would do.
Regarding macro mode, I believe there is now a toggle somewhere in the settings menu that disables that auto-switch which happens when your camera gets too close to a subject. I might be wrong though since I don't actually have a newer iPhone and am going off of some YouTube video I vaguely remember mentioning that.