What other ways are you going to be combating latency issues. I had several matches last night where at least one person on the enemy team was lagging all over the place. It would appear that your matchmaking change has hindered the appeal of pvp. Particularly when I get killed by someone who is lagging.
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I've consistently had issues with multiple people in matches having red connections and screwing get the whole match up. I definitely think the matchmaking got worse.
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From my observations and my friends it certainly has. I recommend they revert the matchmaking during this iron banner and see what happens then. Just because you want a "balanced mechanic" doesn't mean people won't go out of their way to break said balanced mechanic.