Let's say it's your opinion. I have other things, and that's what I'm sharing.
Because the algorithm is closed. I'll make a guess: As soon as a player acquires an item above a certain ILVL, you transfer it to a new division. Thus, having an average ILVL of 188, and one item with an ILVL of 264, I will play with players whose ILVL is 264. This is what I am observing at the moment. The sample is small, about 8 characters.
There are few opportunities to study the algorithm, so I will continue to study.