The racing is actually pretty good. Some great races this year i.e. Canada, Bahrain, and just now Hungary. If not for Mercedes domination this entire season would be incredible. I'm not sure how you right rules to prevent that besides for the ever looming budget cap debates. Maybe get rid of DRS and some small changes with the tires to make it less gimmicky would be good but other than that no real problem with the racing.
The problem is in the organization, not the cars.
First: The circuits. Although I have made quite a few comments against them, I'm OK with having a few TIlke-dromes on the calendar. They aren't half bad tracks, it just sucks that they are so similar and make up half the calendar. We need variety, and we need to keep tracks that are in true F1 territory. Sorry Bahrain. We need to get rid of asphalt runoffs. Drivers need some sort of punishment for running wide, and with grass and sand its a possible end to your day. Seeing drivers make error after error in corners and go completely unpunished for their mistakes is absurd. Safety my ass. Maybe on the fast corners we need asphalt but on slower ones do you really think grass in between the track and the wall makes the circuit dangerous? Especially with today's cars where Massa gets flipped and slides upside down and walks away unscathed. Finally no sanctioning fees, Bernie. You make plenty in TV money, and lets make some from the fans instead of not having any (no races in Bahrain and stuff like that, and no charging absurd prices like in Germany. That price was way way way to high to be good for the sport, and even too high to be the profit maximizing ticket price. Econ.).
Second: The way the sport is conveyed to the public. Craig Scarborough tweeted asking his followers to give him suggestions on the sport and this is what most of them focused on. YouTube channel with highlights and overtakes and funny driver interviews or interactions that sort of thing. Actual competent use of social media such as Twitter and Instagram. The product isn't all that bad, we just need to share it with people. Rather than taking down content online, put it up so people can see how great the sport is. Tweet race updates or radio conversations. Post pictures of the cars on track, I've seen some F1 pics get really artsy and super cool. Have an actual good TV feed director. And have a way of showing fans when drivers are using the ERS system. For inspiration on that the Tudor United Sportscar Championship, the main sports car series in North America, has all the cars carry seven segment displays on each side that display what position that car is in class. Different classes have different colored displays. Its brilliant for the grandstand audience, and F1 could do something similar.
Finally my personal desire is to have the drivers drive more and the teams drive less. Less telemetry for the team to use to walk the driver through his race step by step. Let him make more decisions for himself. Shut up and drive.