1) Introduction, why it´s boring for me
2) Why the current system doesn´t achieve what you want anyway.
3) What your system leads to
4) The fixed system.
1) I don´t believe there are 300-500 people online. Becouse I keep facing the same 3-5 people. is the 300-500 fictional to make it seem many people play? I can understand that, 3-5 playing, that would discourage many people from playing.
If this is not the case, then the matching system is to blame. You decided that newbies will only play newbies, and vets only vets. Yes, you softened it up a little, but not enough. It´s very boring to face the same opponents all the time. In chess, or Magic the Gathering, everyone is paired randomly.
Yes it means newbies being paired with pros at a time, but when that happened to me, I only learned from that. This also makes the community aspect stronger - it´s an honour to play renouned player, and not shame to loose.
2) But why your system fails even at that questionable goal to pair and isolate newbies and low skill players?
I would say the complete newbies get abused even more, especially by intermediate players. T
he intermediate players hunt for DNA, and they KNOW they will get paired with other newbies, so they intentionally give up against better people anyway, to lower they rank, and bash newbies again. So instead of everyone trying to win, people just give up.
Instead of newbie having occasional deadly encounter with a vet, from which he can only learn, he gets CONSTANTLY killed from intremediate players, and learns nothing anyway.
3) This all leads to giving up matches all the time. Seriously, I can´t get a game, please remove my level and rank. The only matches I get are vs the same 3-5 people. If I get someone else, he disconnects immediately anyway. Why would he bother? He knows next match will be a noob for easy DNA.
4) I suggest a simple 1st come 1st served system. In any social or economic system, the symplest system is the one hardest to abuse.
Remove DNA + RANK from any dinosaur, that fortfeits the match BEFORE the opther dinosaur can get DNA. This constant giving up has to stop. Quiters killed many flash multiplayer games. I even see people quiting becouse their boosts are not apropriate for the map.