I don't know how well you follow the sport, and I thought that statement was a bit weird, but you're right in a sense. Football in Brazil, as far as it's national team goes, is at its lowest point in the last fifty years if you consider star quality, ability and recent results. Neymar is arguably the biggest talent and he seems reluctant to take the step over to Europe where you have to be to be considered a player in 2012. They are still easily top 10, borderline top 5 in the world, but Brazil is held to the highest of standards in the footballing world.
The team they fielded in the last world cup was absolutely terrifying, even if it lacked star power. They faltered against an inferior dutch squad, but I still think they had one of the two best teams in the world at that time.
But even if they are at a low point talent-wise, I still think it's insane to think any other sport is even close in popularity to football in Brazil.