Yep, that's pretty much it.
MLS is seen as the washup/neverwas league. Arsenal's Sol Campbell said he was keen to play in the MLS when he turns 35, that says it all right there.
The 500k/year price cap thing pretty much assures mediocrity, even small european leagues can easily match that.
Although I did watch the MLS Cup and thought it was played to a good standard, I just didn't like the way the commentators justified it as "WOW the most high scoring MLS cup final EVER" (the score was 4-2), soccer shouldn't be sold on its scoring.
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