Because thats not the case in this game at all. Every single pvp event is dominated by the biggest whales who don't want a challenge.

This is a sweeping statement which ofcourse has some exceptions to the rule, but in general the vast majority of low level swb - (I have a level 42 character) are completely controlled by some of the biggest spenders in the whole region, guys who always make it far in space time and numerous mods and "ambassadors" are the worst offenders

In theory you are correct, it could technically be used that way, but the way this game is run and the worst "matchmaking" system I have ever encountered in my life it simply doesnt ring true to us.