Queen

Well, you can definitely say that Nazareth isn't top-tier; they don't have as many fans, they're not as popular, or as striking. I can't apply that definition to Queen, so I just say I don't like them. I, for example, don't consider The Hippos a second-rate band. But in general, it's all relative, of course. You're right that we should avoid using these terms.
No, sometimes a band clicks right away. For example, the little-known British band Ten Years After became one of my favorites after listening to two or three of their albums two or three times. I was immediately blown away by The Stooges. I think that whether or not a band has a leader (vocalist or musician) also plays a role in how it's perceived.