Yes, Chris, it's a casual competition that rewards activity as much as (or more than) skill.
Clan War Rating is more up your alley if you want a representation of how good the clans are in terms of skill. If you have Muli's Userscript, the Search box (on the Clan tab) sorts clans by Clan War Rating. Here's the current top 25:
1. MASTER Clan - 309.72
2. ONE! - 297.88
3. Python - 282.21
4. FCC - 230.68
5. M'Hunters - 195.6
6. [Blitz] - 195.5
7. [WG] - 192.82
8. |GG| - 181.25
9. [V.I.W] Very Important Weirdos - 176.43
10. PKU58ers - 172.4
11. {101st} - 157.59
12. Vikinger - 153.91
13. HAWKS - 150.88
14. French Community - 147.08
15. Lu Fredd - 146.93
16. Discovery - 146.92
17. CORP - 144.97
18. Varangian Guard - 141.19
19. German Warlords - 124.06
20. SNinja - 123.92
21. Twelve - 112.86
22. Flunky Fizzers - 110.18
23. ă‚ºKING - 109.1
24. <--The Avengers--> - 108.25
25. Two Steps From Hell - 88.07
As you can see, this captures both the losses of TSFH and the quality of your clan's wins. If you're looking for a decent-enough clan ranking by skill, Clan Wars has that too. Although there's some noise and whatnot (due to template selection, different participation rates, etc.).
Clan War Rating is not the official ranking mechanism for Clan Wars but imo that doesn't matter. Clan Wars' official rankings are associated with rewards and it makes sense from a participation perspective that Fizzer would give rewards for activity rather than simply skill. We can just unofficially use the Clan War Ratings to rank clans if skill ranking is what we're interested in.