Typically that would be viewed as high inequality. If the ruling class of .1% controls 99.9% of the wealth then the "average wealth" and the "median wealth" will be extremely different aka wealth inequality.
Yes, exactly. What matters is do you have the resources to comfortably meet your needs or not. It does not matter if some people have many times more resources than you, that does not affect your situation. You might be envious, but that's neither here nor there really in your day to day quality of life.