Wifi unlike ethernet attempts to do data recovery on damaged packetswhich causes delays.
Incorrect, you're probably thinking about the CSMA/CA random backoff timer. 802.11 itself doesn't offer anything different than 802.3 as you still retain CRC and checksum data. At layer 2 the switch will simply drop a corrupted frame, it's up to a higher layer protocol like TCP to retransmit data. If wifi automatically retransmitted in the lower layer, it would be a terrible atrocity for any sort of real time UDP flows.
But like, why are online games more playable through ethernet than wifi if all devices (no matter how they are connected ) are sharing the same bandwith?
Wireless is a shared medium, and given the nature of RF, no two clients can broadcast on the same frequency at the exact same time (interference). Wi-Fi uses a collision avoidance mechanism where if the NIC sees something else broadcasting on that frequency, it will wait a random amount of time before trying again.
This is the primary contributor to wireless latency. It gets worse with more clients, and also other wifi and non-wifi interference. So if you have a bunch of consoles, IoT devices, tablets/phones and similar on the same frequency, your gaming packet may be waiting a while to be sent from the PC or sent from the router.
In a wired scenario they are packet switched, so everyone can talk at the same time and they don't have the same collision domain. You could recreate this in concept by using an old hub (not switch), as they have a shared collision domain. With a lot of wired clients your performance tanks similarly.