The number of trophies is of course a benchmark for determining whether the team is the best team in the world. You cannot say that Real Madrid is the best team in the world just because of performance. After all, because of such good performance, the result is about winning many trophies. So still, basically winning the most trophies is the main benchmark for Real Madrid to be called the best team in the world. Apart from that, Real Madrid always has great players and/or star players every time regeneration occurs, so Real Madrid always has star players and great players in its squad. Therefore, of course it is very appropriate for Real Madrid to be called the best team in the world because they have lots of trophies and also always have luxury players in their squad.
Yeah, I know the importance of trophies in rating a team's performance but I have stated this before in one of my previous comment that trophies alone is not enough criteria to rate a team as the best among others. There are other aspects that one need to consider which includes the team recent performance. If trophy alone is the benchmark to determine the best team, Liverpool, Manchester united and Arsenal will rate higher than Manchester city. I don't know if you are fan of Premier league but I bet you, if you are asked to name the best team right now in English premier league your answer will definitely be Manchester city despite they have fewer trophies compared to aforementioned three clubs.
In the case of Real madrid, they have both. They play excellently well and also have the highest number of trophies which makes it crystal clear and undeniable that they deserve to be addressed as the best team in the world right now. They don't only have luxurious players, they world classic young players who are ready to give out their best to the team.