Given the amount of luck in the game, it is still very feasible for someone to beat someone that is 300 points higher. It has happened to me in both scenarios. I think Blue Manchu can do something to 1) help players keep the "eye on the ball" and focus on playing their best irrelevant of their ranking 2) to minimize the hopelessness feeling when fighting someone higher ranked. Blue Manchu should MAKE THE PLAYER RANKING NOT SHOW IN MULTIPLAYER MATCHES.
A middle-ground would be banded rankings. Bronze/Silver/Gold/Purple, as one example, and it'd only show your band, rather than precise rating.
It's definitely possible to beat somebody several hundred points higher, but I agree that hiding the rating is a good idea. I don't know if adding banded rankings would make a huge difference, since it would be equally intimidating playing a purple player when you are silver as it would be playing someone 200 points higher.
Please please please please please don't get rid of opponents seeing your rating/level etc. Way too many MP games do this nowadays and I hate it . I WANT to know how good the person is im facing. It makes the end result that much better, be it win or loss I know how I did. I get the awesome victory over someone more accomplished, or the crushing defeat of knowing I lost to someone much lower then me. Take that away and every loss slowly turns into "oh, he as probably higher rated then me" and wins are "well, he was probably lower rated then me". Don't do it, I implore you!
You'd still find out after the game ends. It's to stop people from forfeiting after 1-2 rounds when they're slightly worse off, because "you're 200/300/400 rating above me and I have no chance, and just want my chest".