Kind of ironic for an Australian (Oceana region) to make that claim. Didn't the Aussies win a qualifying round of home-and-away by a combined 35-0 this time around...
This region isn't as weak as it looks. Mexico is a perennial top team, maybe not in their best form lately, but still atraditional powerhouse. Costa Rica gave the host Germans a good showing. I think there are 5 or 6 CONCACAF sides in the FIFA top 100, including 2 in the top 10 (though the US's ranking is somewhat dubious after recent poor showings).
The Aussies had to defeat Uruguay in a home-and-home to qualify for Germany. Imagine if we had to beat one of the four best teams in South America to get in. Our odds would be 50-50 at best.