From the little I know about football, are the best teams really located in Europe?
Individual clubs? Yes. I am not aware of any non-european clubs that can even remotely compare to the top european clubs.
On a national level, there are of course Brazil and Argentina, and sometimes you get some outsiders from South America + Japan, South Korea and USA, who make it far in the World Championship.
But overall, if you want to play football professionally, you better make it to Europe!