Highest quality doesn't necessarily equal wins though . . . Trust me, I've made that mistake (that's how I lost CL last year).
On a different note, my league looks to be pretty competitive. There are 3 teams who have a higher quality than I do. Oddly, non of them have a team value which is even close to mine (closest is 30M less). I presume their subs aren't very strong, or they have highly rated players, but their value is low (must be because they are either older or slow trainers?)
I've advanced out of the 1st round of the Cup (I'm level 6 and beat a level 8 team) only to be placed against another level 8 team.
In CL, my group looks winnable. Here are the teams:
F.S. Sarzanese - LVL 22, 41.7*
Academy FC (me) - LVL 6, 44.4*
Trixz FC - LVL 6, 38.7*
barshlona - LVL 6, 36.4*