It doesn't strike you as odd that the medal positions were dominated by four countries, two of which are heavily americanised and one which itself is america?
Remind me again how that's more competetive than just about every other sport?
Ignore the medal counts, Baseball, if given the opportunity, would flourish in just about every south and central american nation. Many of the top MLB players come from Venezuela, Dominican Republic and Puerto Rico (yes I know..). Other nations such as Saudi Arabia and Netherlands show perennially competitive young talent in the Little League World Series. Of course, this proves nothing but it shows that the potential for development and interest in the sport is present. Do not discount east Asian nations such as Taiwan, Japan and Korea. Even if this only totals 10 competitive nations, compare it to other current sports:
7 of the last 9 10000m race winners have been Ethiopian or Morrocan, 20 of the last 27 medalists have been Ethiopian, Morrocan or Kenyan.
Each of the last 8 gold medalists in the 3000m steeplechase has been Kenyan. Kenyans have won 17 of the last 24 overall medals in this event.
Americans have won 7 of the last 8 gold medals in the 400m.
Germany has a gold medal in 10 of the last 13 team dressage competitions, it has medalled in all but one.
China has 6 of the last 8 gold medals in women's 10m springboard diving.
America has won 14 of the last 18 gold medals in Men's basketball. Each of the last 5 golds in women's basketball.
Russia has won gold in each of the last 4 events for olympic synchronized swmming, both duet and team.
Korean women have won gold in 7 of the last 8 olympic archery events (individual) and all 6 of such events (team).
The list goes on and on...
Almost every event is dominated by one, or a small group, of nations. Baseball is a sport, similar to football, in which the best talents are taken away from their home nations to play abroad. If there was some way to overcome this issue and possibly halt the MLB season by a week every 4 years, it is possible that the baseball tournament will be extremely competitive. Remember, this sport has nly been in the Olympics 5 times. If we look at the first 5 olympic medalists in a given sport, It is most likely that the majority came from a single nation also.