It does 100%.
You don't know who is better until you fight them. We can all believe whatever we want. The truth is universal.
We don't know the truth until it happens. This is why I am not against unranked guys fighting for the title if they have a good display.
No champ is beating every fighter in the division. He/she has a better chance with some fighters, and a not so good chance with other fighters.
That is why title defenses is the best way of judging who is who. A fighter needs to be able to be successful against multiple styles in order to successful defend his title with consistency.
Even that measuring stick is flawed, because the UFC is not an equal opportunity organization. Some contenders have longer winning streaks than the champions in the division, and are still no where near getting title opportunities. hahaha
What a joke.