Good post
If I understood correctly, what you suggested at the bottom of your post was a hybrid system which segregated players on skill towards the lower end of play (most of the time people don't see lag there or the slight lag is not so important because of the low skill level) and as people progress, widen the skill ranges in the MM groups and prioritise connection more.
Good idea. Not sure whether it will just punish mid-skill players (just I the band where connection takes priority) who will face a wide range of skills in their matches but not have lower level players to kill (as they will be segregated based on skill)
The top tier players (Youtubers and streamers who do this for a living) should realise that new players need to be attracted to the game and be encouraged to play. Without these players the game will slowly die and so will their income from YT / streaming / carries. If the game has too high a learning curve for new players then their businesses will suffer and die as well. If they complain too much about the system, it will also put off new players and it will have the same effect.
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That would be one of the effects. It would also protect the play experience of people who are difficult matches because they live in remote areas; areas with bad internet, or who play at odd hours. But matchmaking is exact. Even in SBMM you're going to get paired with some people who are slight better. Some people who are slightly worse....and you're own level of play will vary from day to day.