If the quality was so high, then the following outcomes were not possible in Qatar 2022:
1. Australia defeating Danmark (1-0)
2. Japan defeating Germany (2-1)
3. Japan defeating Spain (2-1)
4. Morocco defeating Belgium (2-0)
5. South Korea defeating Portugal (2-1)
On all these instances, European (UEFA) teams were defeated by teams from AFC or CAF. The days of European dominance in football is over. The sooner you realize it, that much better for you. Else you will continue to lose bets on these teams.
I agree that European teams are stagnating while other nations teams are getting better. As an European, I find this good because it will bring us more good games in the World Championships. But if you look at the world champions, other than Brazil and Argentina there is no nation outside Europe that have won the World Cup since Uruguay in 1950. Every nation (including the top European nations) can lose a game or two. But we will see if your words that European dominance is coming to an end will come true.
I think it is because soccer has become more and more of an international sport and players are highly mobile these days. The team of Senegal is a great example of that. They have a relatively high number of superstars playing for European top clubs. Due to that they have the experience on the pitch to play under the highest pressure. The number of South American and African players playing for top European teams has significantly increased over the last decades at least as per my perception. I have no statistics at hand right now, but my guess would be that that is the case.
I think the trend of teams other than the typical favorites competing stronger and stronger will continue in the future. Scouting is so strong and global, when there is an African or American or etc. player, it won't go unnoticed anymore. These players will be supported and promoted very early on and can then give back to their national teams later on. The competition will even out even more in the future.