Iron Banner works exactly like doing the moon strike. Ever notice how low level enemies damage you almost as much as higher level ones? Because in Destiny, when you out level someone, the damage they do to you doesn't change, but you do way more damage. Example: unfortunately I don't have a screenshot, since I didn't know I'd have to point this out, but I two shotted a level 2 in Iron Banner yesterday (2 shots to the body) with a blue hand cannon. However, when he went to melee me, he still did almost regular melee damage. That's what Deej means by taking skill, yet the level advantage exists. They do that so you can still easily solo low level content, but you can't steam role.