I wouldn’t really say strength of schedule is “phony”. The records don’t lie, over the course of 162 games the good teams are winning a lot, maybe 100 games for the best, and then progressively less as you go down the line until you get to the worst teams at 50-60.
So logic follows that over the course of a seasons’ time, you’re going to have a higher percentage chance of beating poor teams, which will lose more overall, than the very good team who will lose less.
Is it overblown? Sometimes, because it’s just one factor. How your team is playing at one particular time matters, how hot, how healthy, etc. And obviously there are individual exceptions, some contenders have certain poor teams that they struggle with while some poor teams may have the number of a high end team.