That's not my experience, and I'm an elder millennial. The only time tiering up has encouraged me to quit a game was when the higher ranked players were just more toxic. Being challenged can be part of the fun.
That's not to say I think matchmaking is simply better than persistent servers. Having a group of regulars and developing a bit of a server culture is good fun. I guess I like both options depending on the mood.
Of all the reasons I've seen for why people struggle to unionize, I have never seen anyone suggest that unions don't want members.