The current matchmaking in live is very flawed. The top players are complaining about how noone plays, and equally the rest of us are complaining about getting super stomped every time we play.
So simple to fix. Use the same mmr as any multiplayer ladder game, starting at 1500 and going up and down according to how well you do. if you lose 5 in a row you will be at 1400 and face other 1400 players, if you win 5 you will be at 1575 and face other 1575 players.
rewards should then be based on how much you win, with more reward points from having a higher rating. With this system everyone is winning about 50 50, and the top players are still being rewarded properly.