I really don't understand this argument when defending Real Madrid's record.
Barcelona have dominated every competition that they were in over the last ten years. It is obviously more difficult to compete with them than what other teams who have won league titles in other countries have had to. Why haven't other teams with great resources been able to stop Barcelona in the CL over the last 10 years like you think Madrid should have in the league. That is not to say Madrid should relax and just say "Barca are too tough to beat" and give up of course.
Of course they were up against a phenomenal Barcelona side but one has to ask why couldn't Real produce a squad that could compete? They had the same if not more resources, the brand, the support and an ever bigger status and yet one produced 2 or 3 great winning machines, one of them was arguably the best of all time whereas the other created a fairly competitive team that won the occasional trophy every now and then.
Barcelona did things better over the past ten years, that is how Madrid could not "compete" like you say. They have bought better and smarter than every team in Europe and they have produced better players than every team in Europe. If you made a best 11 of the last ten or so seasons, then it would comprise of mostly Barcelona players. They have done things very well and I have to hold my hand up and say well done to them. They have done everything better and more intelligently than Madrid and every team in Europe have. In certain cases Madrid certainly should have done better I agree, but for us to have produced better sides than what Barcelona have done since Guardiola took over(heck even the Ronaldinho team is better than any team the Premier league has produced over the last ten years IMO) is asking for perfection (it is not just Madrid who have fallen way short of that). No matter how much money Madrid have, they couldn't have signed players of the quality of the likes of Messi, Iniesta, Xavi apart from Ronaldo (who is not as team orientated as them) and it is a big ask of Madrid (or any top club where there is little patience and instant success is demanded) to expect them to have created a consistent philosophy like Barcelona have where they can change coaches and continue without needing much time to adapt (no top club in Europe has a philosophy as well established or as clearly defined as Barcelona).
Other teams have lots of resources too and they haven't had anywhere near as much success as Barcelona have had. Fair enough if you think that is not good enough but I hope you apply those standards to other teams also. Other than Barcelona, Madrid have won the CL as much as any other team has done in the last ten years and have done well in terms of getting far in the competition over the last few seasons. Don't get me wrong, I want the team to be doing better also, but you are giving other teams whose great resources you seem to be ignoring a much easier ride than what you are giving Madrid, despite Madrid competing with a much tougher adversary.
The other point you make is whereas we would have done better to which I would say it's simply impossible to tell because teams build according to the nature of their league and their specific circumstances.
United have great resources and regardless of the league they are in, their desire is to be the best in the world on a regular basis just like Madrid's. But just like Madrid, they have not come close to reaching Barcelona's level of dominance in the CL (the only competition that both Madrid and United share).
If we were set in Spain with the conditions in that league and we had the same finances as Real Madrid, I would consider it equally unacceptable to not be able to compete with Barcelona.
Fair enough, but Madrid, while they have made mistakes in terms of transfers, have still been very strong and competitive over the last few years (as evidenced by them winning the CL in addition to reaching at least the semi-finals since 2011) and only Barcelona and Bayern have done better than Madrid in that competition over the last few seasons. So not only does that show that Madrid have been doing better than United, Chelsea and the other teams that you claimed have done better than Madrid over the last few years in the only competition that they compete together in, it also shows that Madrid have been consistently competitive and that Barcelona have still been too good for Madrid to beat. If Barcelona have been as good and as worthy of all the praise that they have been receiving over the years, then surely Madrid who have pushed them very close in title races over the years couldn't be as bad as you are making out. Don't get me wrong, I don't think Madrid should be patting themselves on the back or anything, but things are nowhere near as bad as you are making them out to be.
The bottom line and only measurable variable is that Real Madrid over the past 7 or 8 years have achieved less than Barcelona, Man United, Chelsea, Bayern Munich and depending how high you consider the CL, that list would include Juventus, Atlético and Dortmund
Kind of you to choose 7 or 8 years, it seems quite selective. Normally people would choose either 5 years or 10 years. Over the last 10 years Madrid have won 1 CL and 3 league titles. United have won 1 CL and 5 league titles (and IMO wouldn't have won the 08/09, 10/11 or 12/13 titles if they were competing with Barcelona those years), Chelsea have won 1 CL and 4 league titles since 04/05 (IMO they would not have won the 09/10 one or this seasons one if they were competing with Barcelona). I also do not rate success in a league where the top teams (United, Chelsea, City and Liverpool who finished 2nd the year before) regularly go out in the group stage of the CL as highly as you do, but that is just me. Personally I do not think Bayern would have won their league titles in 09/10 or this season if they were up against Barcelona either.
Many people would consider Madrid to be a better team than Chelsea this season because of them pushing a strong Barcelona teams until late on in the season and going further in the CL, but I am sure you think that it is Chelsea who are better for winning a weaker league and I am sure you will ignore their embarrassing CL campaign (but if it was Madrid who went out early I am sure you would mention it). In regards to Juventus, yes I think Madrid have done better than them over the last few seasons. They have not had the toughest of competition in their league over the last few seasons and they have not being doing very well in Europe (apart from this one) for quite a while.
Like I said already, Madrid should be doing things better and things are far from perfect, but other than Barcelona and Bayern, there is no team that I feel has done better than Madrid over the last few years (since 10/11) and a lot of the "success" that these other teams are having would be much smaller if they were competing with Barcelona over the last 10 years. Things are far from perfect and there are things the club should be doing much better, but nowhere near as bad as you make out and Madrid are not behind as many teams as you claim.