With Chuck's first two answers I agree and won't elaborate beyond it.
About how much you flew recently vs how good that makes you, well just think about your first flights followed by a very short break of perhaps a week. Today I am pretty sure you can stop flying for well over a few month without any serious deterioration (although the instrument scan goes away pretty quickly). So there it is, just down to your experience, with a common scale to measure it counted in number of hours...
As for what type of flying you do, as Chuck said, it is all down to what you want to do. Basically if you aspire to be a professional instructor then the more time you spend with students, the better you are likely to become for newer students. You will get time to polish or reassess your teaching skills for each indidual.
Then again, if you want to fly let's say crop dusters, this won't be of much use as perhaps some more instinctive flying will be needed (such as gliding, low level flying,...).
No matter how many hours you have had accumulated by now, what will really matter is how much relevant experience, you then hold.
This is just to say hours are all relative but there is one thing they have in common. The more hours you have flown, the more likely you are to have encountered various/unusual situations, had to make split second decision or had time to think about what could have happened if....
This probably why hours matter.