Does it mean I need 3 starred Pokemon for them to be of good use in battling?
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3 star is 82-100%. But to be good in battles, it depends on if you use it in gyms/raids or pvp
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Each bar is broken into 5 segments so 3 bars equals 15
Don’t a Pokémon’s level and moveset mean more to its effectiveness in battle than its IV? If so, then a level-40 having only two stars in the new system would generally be more battle-worthy than a level-20 having three stars, if everything else about them were the same.
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I only max out 100% Pokémon and none of the ones I have are really relavent to the meta. Don’t waste your dust and candy.
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There’s more to it than that. Certain stat spreads are more useful in different situations. Higher attack is best in Raid and Gym Battle situations, while higher Defense and HP is ideal for PvP situations. Moreover, some Pokemon are just better than others beyond just statistics. Movesets also play a role.
If anything, go here and run some comparisons. Invest in great counters for Legendary Raids, see which of your high-IV Pokemon make the lists on the spreadsheet I gave you. Study up. It’s the best way to direct your Stardust and Candies.
For instance, I keep a separate spreadsheet of my own that lists the IV spreads of each Pokemon. Every time a new Legendary comes around, I choose two that might prove very useful against them.
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That does sound like an effective approach to getting the best results.
For me, though, it would probably turn play into work. I’m reminded that I didn’t get into Pokémon Go with a goal of ‘winning’, but to relax a bit, walk a bit, get back some of the health I had been taking for granted, and have a bit of fun in the process.
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It may be a bit more work than normal, but if you enjoy doing it, is it really working? 
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Please, @Arem1771, don’t make me philosophical. You wouldn’t like me when I’m philosophical… (apologies to Stan Lee and Bill Bixby)
Attempted levity notwithstanding, I have a tendency to try to make play productive and work fun, usually winding up achieving neither goal (productivity or fun) in work OR play.
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