The Sillies aren't quite there, although they have enough hitting to make them exciting to watch. They simply don't have the pitching they need to be an elite team.
No one is that much better than they are, but the elite teams aren't any weaker. It's simply a matter of which team is hotter at this time of the season.
If the Phils are lucky enough with their pitchers, they could get to the World Series, but that is a huge if. Their starters aren't able to pitch a full nine innings, and their bull-pen is dicey at best.
Their hitting makes them dangerous, and the Mets think they're not as good as the Phils, having lost so many games to them recently. If they don't start winning soon, the Phillies will take the division.
The Yankees have actually made a race out of it, and will make the playoffs even if they don't overtake the Sox.