The current rankings aren't distorted because Fiji is playing like a 16th ranked nation in the world right now. It happens, Canada's been there not to long ago. I agree that Fiji has been around top of the tier 2 (not a minnow) exchanging places with Argentina, Italy and Samoa.
Your second group of points are both terrible and completely wrong. From the top of my head I believe Fiji only has something like a 65% against both Tonga and Samoa and plays most of their games against those 2 teams. As well, Fiji have only beaten Scotland and Wales, whereas Canada has beaten Scotland, Wales and France. So those points are moot.
I never said that comparision, you should brush up on your reading comparision. I was comparing direct results against roughly similar teams that both Canada and Fiji played at roughly the same time and they show that Fiji played 1 really good game last world cup, they aren't so godlike that any game against anyone around their ranking is an auto win. They are apart of the upper echelon in their rankings but as rugby shows if a team is around your ranking then they have a chance.
Your last point is incorrect but rather than waste my time having a little look to prove your wrong, I'll just say source please.
I'm not trying to say Fiji haven't been a good team. I'm simply stating that you can't go around and say they are better then everyone else around them if they had so-so players. That argument is not applicable because they don't have those players for whatever reason.
As well, you cannot say that they would automatically thrash all of their opponents because unfortunately, history disagrees with you. Looking back at the last world cup, when they had their supposed awe-inspiring team they only beat a bad Canada team 29-16 (need a disallowed try as well) and Japan 35-31. Hardly thrashings against 2 teams vastly below their class.
Once again, if Canada played Sidney Crosby, Ryan Getzlaf and Shea Weber, Fiji would be annihilated. The ABs better watch out then. Exact same ridiculous argument that I'm making.