To clarify, I don't have any argument about whether or not American players are rated properly or not because I don't care and that was never my point, I was only interested in your comparison to the performance of those particular European teams.
You must have a conveniently defined second-tier of European teams, because they don't. Teams outside the upper echelon of UEFA make it to the knockout round every tournament, some regularly. That's not outperforming every non-elite European team. Making it past the group stage is nothing out of the ordinary for teams like Switzerland or Sweden. Unless you think those aren't second-tier teams? Until recently, even a team like Belgium could have been defined as a second-tier team in UEFA. The top European contenders aren't the only ones who perform well in World Cups. You don't routinely do better than them, you rarely even beat them when you play them.
Your point about the disadvantage of playing in weaker leagues and not being properly rated is nonsense as well, the best players from countries with a weaker domestic league eventually make it to the stronger leagues. How many of the best Uruguayan, Chilean, or Colombian players are stuck in South America? If they are, it's either because they're still young or they won't be there for long. The majority of their squads are based in Europe regardless. Do those national teams unfairly underrate players from their own leagues? I don't see those teams being very underrated either. The same applies to players from the lesser leagues and national teams of Europe.
Give or take one or two
The top tier: Spain, Germany, France, Italy, Netherlands, Belgium, Portugal, England
Second tier: Switzerland, Sweden, Croatia, Serbia, Austria, Bosnia, Greece, Slovakia, Slovenia, Scotland, Ireland, Ukraine, Russia, Poland, Denmark
We've consistently had better results than those teams.
Round of 16 appearances in last 5 World Cups:
5: Brazil, Mexico
4: Germany, Spain, England, Argentina
3: United States, Belgium, Sweden, Japan, Switzerland, Portugal, Netherlands, Uruguay
Of the "3's", only teams from that second tier in Europe are Sweden and Switzerland
Switzerland has the same amount of appearances at the tournament as us in that stretch with one less knockout win. Sweden has the same amount of knockout wins as us in that stretch, but one less WC appearance.
So yes, I think we have consistently shown ourselves to be better than all of the second tier over the past 20 years.
If you think that European players don't have a big advantage in getting jobs with teams in the top European leagues, we might as well end the discussion there. There are restrictions in every league in Europe.