Hello,
To be perfectly blunt, a power-based matching system is completely untenable. It discourages spending in a huge way. The primary reason that players spend is so that they can advance their accounts. If spending will not advance their accounts because all matchmaking systems will guarantee that they will always only fight people of their power level, no one will want to spend. It's unlikely the game will immediately fall apart due to the lack of a revenue stream, but it will suffer because of it, and you can bet that the people in charge will not make a decision that free players want that spenders do not. This is why, despite these suggestions having been submitted multiple times, they have never gone through. This is just common sense.

While I sympathize with you that, yes, it is frustrating to lose to a level freezer, you have to look at the other perspective. Your level freezer in question was clever in his strategy to level freeze and to raise his comparative power to his level. Why should he punished for that?

Ultimately what you're asking for is essentially the Zenith event. It takes power completely out of the equation. There are events for spenders and events for free players, and since spenders generate more revenue for the company than free players, there are more of the former than the latter. You should give the Zenith event a try if you'd like extremely balanced gameplay.

Thanks!

EDIT: P.S. I forgot about Sage World Arena, it does much the same thing as Zenith. Please give it a try!