Changing matchmaking did close to nothing when there aren't enough players online to form a good match.
I've been running into people both well out of my skill band, and people with terrible connections.
We need more people to play PvP, and you need to give them an incentive to stick around.
I'd start by giving new players good loot so that they stand a chance against more experienced players, but I'm no expert in this.
I just know we need more people to play PvP so that matchmaking will put people in fair lobbies.
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Loot isn't the difference between good players and novice players. A good player can go in with all blues and still be a good player. A novice/bad player can hack the game for an all exotic loadout and still be stuck at his level.