It's like they wanted to make a game that featured a leveling system that has zero effect but could still be marketed as a game with a leveling system. With all the scaling down and balancing out level advantages you may as well not have a leveling system...but then it would have been much more difficult to lie to your consumers to push this as RPG - "esque".
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It doesnt add anything. It just imposes limitations. lvl 27 vs 30 raid boss? We're gonna lower your total damage until you are equal level. lvl 27 vs lvl 4 dregg? We're gonna lower your damage to keep game content relevant.
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If you've ever played the Raid, you'd know that the levels matter.