Thats the point. They want players to only enter with the best gear. They made it so if someone tries to enter with sub-par gear, they're screwed. However level shouldn't be the only factor. Skill should be the primary factor.
It isn't broken, you just expected to enter with your best gear and anihlate with ease. Thats not how it works. The original Iron Banner was broken, as gear didn't matter at all. Now it does, but, people don't take into acount your gear isn't an "I win" button.
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The fact that the lightlevel doesn´t matter at all is bad enough. I don´t want to be screwed by a lvl25 the same way a lvl30 does. Thats not how they advertised the IB, thats not why I made it to lvl30 with lots of ingame hours. The small amount of more armor points a lvl30 has compared to a lvl25 doen´t mean anything at all...maybe one single bullet from a suros. It´s all about the weapons and even the weapons are not really bad or good. A lvl25 with a blue AR can also rip a lvl30 into pieces within a second. The advantages are so small you can simply give a shit about it. So why is there even a IB, when it´s nothing more than the normal PvP with damn ugly gear to buy?