Awe the friendly inviting atmosphere of the EF forum, quite possibly my favorite aspect.
1) I honestly believe the main problem with US soccer is the nation is so spread out and the "hot beds" of soccer are also very spread out. IMO the west coast, east coast and texas seem to be the most inviting to soccer. Unfortunately those areas are very spread out which makes development of young players quite difficult because bringing the best of the best together is very expensive. I don't feel its a coincidence that many of the best athletes in the cheapest major US sport (basketball) are from poor backgrounds. It's easier to develop a strong base for development when the distance required to travel isn't a huge factor. All this said some figures show MLS having higher attendance than the NBA and NHL
2) If the question is who's created the "best" players as in which nation produces the few players who are considered the best (best, pele, etc) than I would agree south america is dominate. Mainly due to Brazil pumping out loads of talent since the 50's.
3) Unfortunately for panchesters stance I think the question is who produces a better player on average (meaning if you pool all the professionals from those nations which will have a higher standard). In this case I feel it is Europe plan and simple. European football (in general) produces more "complete" players, as in the do whatever it takes. Obviously there are exceptions but if you watch a team like Germany or Spain you'll see most the players involved in whatever is going on. If it's attack than the defenders are pushing up the wings, if its defense the forwards are attacking any dropped balls. In south american football I feel it's far more likely for players (especially with so many brilliant attacking players) to have a "it's his job" mentality.
Some good quotes from one of the greatest sports films of all time can help explain why I feel Europeans produce an average better player. From D3: The Mighty Ducks
Coach Orion: [picks hockey puck up off the ice and addresses the Ducks] What's the one thing all great teams have in common?
Lester Averman: Great coaching.
Coach Orion: [unamused] Don't try to suck up to me, Averman.
Coach Orion: Defense. See, unlike scoring, defense never quits. But to play great defense you need one thing above all else.
Lester Averman: [sarcastically, to Goldberg] Bet it starts with a W.
Coach Orion: Confidence. Listen, if you learn nothin' else when you're here, you learn this, all right? This is not just about hockey. It's easy to be confident when you have control of the puck. It's very, very difficult to keep that confidence when you gotta take whatever strange bounces life throws your way. Don't be careless, but don't be too careful either. You cannot be afraid to lose! That's how you gain the confidence to attack the game when the puck isn't yours. That's how you attack life... even when you think you don't have any control. And that's how you play real defense.
To win games and championships you need defense, but that doesn't just mean good defenders
as coach Orion would say "Know how long it takes to score a goal? One second, so you're never safe." (or something along those lines)
4) Also I don't think prominent flashy football qualifies a region of having a better attack. It is true that many of the best attackers are south american and play in a flashy style, but that doesn't make any south american player who has tricks a good attacker like some people seem to believe. End of the day I don't feel a player like Robinho is nearly as effective as a player like Lampard.
Granted there are exceptions to everything I said as it is all opinion and not fact.