That kind of example says nothing about anything, really. Portugal is the current European champion and lost to Uruguay, who fell in the group stage of the last Copa America. Chile is in horrible shape since they won Copa America in 2016, and, as you know, didn't even qualify for the Cup. What does that mean? Nothing. Can't take any objective conclusion from it. It's a long stretch to conclude what you did, and I say that without even considering it was a friendly with no purpose (both of them out of the Cup) and Chile was with 10 players since the 30th minute.
Now, South America's actual top teams are on the same level as Europe's top teams. France almost lost to the worst Argentina in decades. England needed a fake penalty to beat Colombia on penalties. Belgium recognized Brazil's superiority so much that they made their game all about defending and counter-attacking instead of playing possession as they had been doing. And had a bit of luck as well. Yes, they all won, but those victories do not show that they are better "by a wide margin". Just analyse the games and see.