The mighty Stade de Reims were to be fair to them the French Champions at the time and they made it to the final. I hate to come out with cliches but you can only play who you're pitted against! However, the competition struggled at first due to the fact that certain FA's asked their clubs not to enter. ManU went against this and entered the 2nd tournament. Liverpool would have made their 1st appearance in 1964 unless I'm wrong. The fact that Bayern, AC, Liverpool etc weren't in it before was because they weren't champions. Now, you might say that Real's dominance in Spain during the time of Franco was dubious at best but you can't argue with their performances in international tournaments!!
Oh, and speaking of stroppy Dutch strikers let's hope Dirk Kuyt has broken that particular mould!