I’d like to offer a very simple solution to the current issues with matchmaking which also effectively addresses the topic of arena dropping.
You would start by restoring the same exact matchmaking system that was used in version 1.6 with one difference: If a player wins a lopsided victory over a weak team, the winner is given a special trophy bonus proportional to the difference between their current trophy count and their maximum trophy count for the current season. This “special bonus” would only be applied as a positive value with a minimum capped at zero.
Why this would work:
First, it would eliminate intentional arena dropping because it removes the incentive. Nobody will intentionally lose 30, 40, or 50 matches in a row just to get put back where they belong in three or four wins. The inconvenience wouldn’t be worth the trouble.
Second, it wouldn’t break the Season’s PvP because you would still need to win more than you lose to advance your maximum trophy count. This “modification” would have zero effect on that.
Third, players could still swap in weak teams to try out new dinosaurs and get right back to their proper trophy count quickly when they are done experimenting.
How this would work:
I realize that EVERY matchmaking system can be exploited and that is why you don’t share your exact methods with us players. However, if I were writing the routine, I would trigger the “special bonus” based on a single win in combination with a team strength mismatch. The team strength mismatch would be calculated on the difference between the two player’s maximum arena season totals.
Example: Fred has a season high of 4100 and arena drops to 2000 to get easier matches. Fred switches in his team of boosted level 25 uniques and gets ready to tear up his opponents. Fred gets matched with Alice who is at 1950 and who has a season high of 2100. Fred crushes Alice in three one-shots. Because there is a 2000 trophy count difference between them, Fred gets the usual 30 points, plus one-half of that difference (1000) for a total reward of 1030 trophy points. Alice is not demoted for the loss and gets zero trophy points. Fred is now at 3030 points and much closer to where he actually belongs. Alice grumbles about not having a chance, but it didn’t cost her any points.
EDIT: I have written software professionally for over 35 years. I have few doubts that this is simple enough that it won’t increase server load and is probably simpler and more efficient than what you are currently doing. Enjoy!