If there were an unlimited number of players, enough brackets, and a good match making system, then you would only fight players that had equal skill and gear. If you had progression in that system, you would never gain an advantage because as soon as you got more gear you would be matched against other players that also had better gear. The math would be a wash, and your gear upgrades would essentially be cosmetic.
The only way that you'll really be able to see a gear advantage is by being matched against players that you shouldn't need an advantage over to begin with. I'm just not sympathetic to people who threaten to leave if they don't have this. I prefer the systems that are designed to equalize players (bolstering), bring the community together as much as possible (less brackets), and encourage new players to join in (1.2).