Maybe you ought to check.  The following types of games are considered:
*  World Cup finals matches
* World Cup preliminary matches
* FIFA Confederations Cup matches
* Continental championship final matches
* Continental championship preliminary matches
* Friendly matches
I agree with you, though, that rankings can be deceiving (and that US, among others, is ranked far too high by FIFA- the Elo system is generally much more accurate).  The point was that Europe doesn't complete dominate the sport- after all, South America has won 9 World Cups compared to Europe's 8.