Difference between CoA Lv 1 and Lv 3

[SSJ2]

So we see Oden's retainers being able to cut and damage Kaido due to their Advanced Armament Haki. We also know that Luffy has now mastered this level of Haki. My question is, how much of a difference do you think having Lv 3 makes? For example if Denjiro fought Zoro (lets assume they are evenly matched), would Denjiro immediately stomp him due to having destructive Haki? Does it automatically place you above someone who doesn't have that level of Haki, even if they may be stronger overall?