The difference between $160m and $255m comes down to mostly depth. At $160m you're still drafting relative scrubs for your bench and mop up roles. At $255m you're fling your entire roster with the best of the best.
When I play $255m league my roster is typically between $200-230m; and I've taken who I feel is the best available with all 25 roster spots. At $160m I draft the best available at all of my starter roles and all RPs that I expect to have any significant role, but go with $200k backups and mop up, so I've got 4-8 minimum positions being filled.
So yes, Ruth will likely perform better, but only marginally so and only insofar as he's facing these weaker mop ups. If he's only facing pitchers who will play any significant role, the. Don't expect much improvement. Also, I notice at $255m, there are more hitter friendly ballparks, whereas at $160m there are still a good number of pitching friendly parks. So, expect that to also play a role.
All in all, I'd expect fairly similar stats overall.