The big issue isn't necessarily the way the Cup is designed. The greatest 'flaw' isn't even a flaw at all; it's simply a lack of quality in football worldwide. It isn't surprising that the Club declared World Champion will always end up being South-American or European, given that these two regions produce, buy and sell the best players of the world.
Granted, CONCACAF, CAF, and AFC level have risen considerably, but only on a National Team scale. Local leagues still lack major investments, and in the case of countries like the USA, a total interest of the people. You cannot expect a team like DC United or America to measure up to either a European side, with usually a 200-300million+ Euros budget, or a South American side, which tend to have 75-100million Euros budget, as well as the best player-developing institutions in the world. The big business in football in South America isn't ticket sales or merchandise; it's the export of local product AKA players.
Until CONCACAF, CAF, and AFC -let alone OFC- are able to raise the quality of players they produce, the institutionalization of football clubs, a considerable budget, and (once again, applying particularly to the US)a proper crowd behind them, which translates in a bigger market of consumers, CONMEBOL and UEFA will dominate perpetually International Football Tournaments, of any kind, be it club wise, or nation wise.
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