Yes - your assessment is correct. Only people that spend will place well in rankings and tournaments.
just keeping in the top 100 of most events without spending a mint is almost impossible. To replace lost resources and troops after is crippling for non spenders....you will only do it once.
Yes ... V.I.P. gives a huge advantage to its members.
special troops only for vip, special city schema that is better than anything we can purchase (for free), special tourneys only vip can play in,(often with amazing rewards much better than any offered to normal players), free stuff, advanced notice on events, discounts, new pans, and the ability to ask questions similar to the once a week "ask a palarium cm" anytime you wish ....
Like most games - this is a pay to win platform.
Unlike most pay to win games this one is more about gambling then purchasing a victory, and vip status is something not worth spending to gain - it is a bad wager at best - you can (and probably will) invest a lot of time and money with zero guarantee of a payout. You are better to put your efforts into something that is guaranteed a benefit and leave the v.i.p. bonuses for the chosen of palarium - what ever the sneeky secret status they use might be.
Even persian positions are a better gamble - however the people that use it constantly and know much more about it than me seem to feel it is also a bad wager these days - but still one of the best ways to improve your troop count quickly. again assuming you are willing to spend to replace lost units.