Back then the competition from abroad wasn't even close to being as substantial as it is now. Those players on the Dream Team were easily the greatest players in the world at the time. There was no country that could match the talent and experience of the Dream Team. Times have changed since then and European leagues have become much stronger and also much more popular.
The Dream Team probably even had a hand in the growth of other leagues and the talent of players from other countries. They turned the world on to the game of basketball and how perfect and wonderful it can be. Instead of idolizing soccer greats, the could be like millions of other kids in America who were pretending to be Michael Jordan or Isaiah Thomas, counting down seconds on an imaginary shot clock. The Dream Team inspired a generation of kids who grew up playing basketball and are now their own country's star athletes.
When the Dream Team first played in 1992, Ricky Rubio - the 17 year old phenom for Spain - was not yet 2. There is no question that 16 years ago there would be someone so young and so talented. The number of foreign representation in the NBA is staggering compared to that in 1992. From just the 00-01 season to the 05-06 season, the numbers changed drastically. In 00-01 the NBA was 89.9% American, whereas in 05-06 that number dipped to just 81.1%. With players from over 65 countries, the basketball contingent from outside the US is growing and catching up fast.
So the question is, was the Redeem Team better than the Dream Team? Obviously it's a subjective question that is all pure speculation, but I believe that this year's team was better than the one in 1992. Am I saying that the Redeem Team was better then the Dream Team? No. Maybe. Probably. I don't know. But what I am saying is that in a field of competition that has only gotten better, stronger, faster and hungrier - the Redeem Team was just as dominant as the Dream Team. Which, logically, would lead me to surmise that this year's team is, in theory, better.
When you look at the numbers (dream team vs redeem team) the dream team wins whether it be ppg, opp ppg, rebounds per game, 3pt% opp 3pt%, etc. I think what ultimately make the Dream Team better was the fear and respect other countries had for them. After Barkley cold cocked that Angolan basketball player in 1992, the whole team actually asked for autographs and requested that the US players posed for pictures with them. This is unfathomable now.
Truth be told, the Dream Team was simply hard (in an OG sorta way). The Redeem Team, with some notable exceptions (Lebron, Kobe, Wade) does not have the same killer instinct that 92 team possessed. Every player on the 92 team possessed the ability to will them to a victory if need be - This 08 team has exceptional talent, but were often unable to play and function with the same kind of synchronization of the 92 squad. Not to mention that the 92 squad (mullin, stockton, bird, pippen, jordan, etc) could shoot the lights out - this 08 just cant shoot that well (redd - and he didnt really play).
Most of this is a product of maturity. Could the 08 grow to eventually be better than the 92 team - sure I think so. But at face value are they better? I wouldnt bet on it.