In basketball, also, the level of play has come much closer to the U.S. level. The U.S. did not win the FIBA tournament since 1994. They lost in 2006 with LeBron James, Dwayne Wade, and Carmelo Anthony. It's also important to note that several of the best non-U.S. pros sat out this tournament, also. Notably, Pau Gasol, the second best player on the champion Lakers and probably the best big man in the world right now.
The U.S. had to rethink the way they ran their national program after getting embarrassed, getting more continuity with players committing to multiple years. Wade, James, and Anthony came back after losing in 2006 to put on a dominating performance during the 2008 Olympics. I was extremely impressed with how this current team was put together, because I thought they would have trouble handling the much taller teams they would face. Instead, the U.S. smaller but quicker and more athletic players created trouble for the taller teams they faced by stealing the ball and getting out for dunks and layups. Also, Kevin Durant is a beast.
In short, I actually believe that the quality of U.S. basketball got better as a response to the improvement in the international game and the realization that it was not a glorified exhibition. That's quite the sea change from what the original Dream Team faced in 1992.
Back to baseball, here are the 2009 rosters.
http://web.worldbaseballclassic.com/rosters/index.jsp?team=u...
Just clicking around, Venezuela and the Dominican Republic are loaded with many of the most famous MLB names. The U.S. is, too, but most of the biggest U.S. baseball names I'm familiar with are on there, and they lost any way. Japan has several major leaguers and of course they have the second best professional league in the world (I don't think there's much dispute about that).
So I think with basketball we have re-asserted ourselves as the dominant world power, but only with a renewed dedication and commitment to get back to that place. I still stand behind my argument that the quality of baseball player development is now better in some other countries than the U.S. This is very much like the English Premier League, considered the best league in the world, and with many English stars, but not enough to make England a dominant football power.
And yes, maybe I think about this stuff just a little too much. :)