25chestnuts
Have you experimented with systems similar to what Hearthstone does? (where everyone starts at the bottom of the ladder, and rank up as times goes on?) Even if the queues are perturbed longer in this scenario, I am pretty sure that it feels less shitty to go from Iron IV to Bronze IV than from Gold IV to Bronze IV and more players will be likely to approach the ranked queue. Having more high skill players joining the queue (your words) may only be showing that effect.
Furthermore, given that MMR is already hidden, the overall deflation in the system should be transparent to the matchmaking. You only care to keep the relative distribution of rankings accurately.
I love Hearthstone personally, so I'm pretty familiar with their ranked system! It works very well for a 1v1 game, because you can resolve differences between skill and rank really easily when you only have two players facing off.
Let's say a given player is Rank 2 skill, but currently Rank 6. In Hearthstone, they'll play other Rank 6 players, and on average, be better - so they move up! Their opponents, as average Rank 6 players, will probably lose when they hit the Above average player, but that won't be the norm and they will even out over time.
In League, we have to worry about teammates. This means that if you are Plat Skill but currently in Bronze, and we match you into games of Bronze Skill, you probably win more. But so do 4 of your teammates, and 5 of your opponents lose a game they had no chance at winning. The amount of disruption each of these games creates is 9x what Hearthstone experiences, and means that the system destabilizes much faster as players get lucky streaks of being carried or unlucky streaks of getting stomped. This can happen today with smurfs, but adapting Hearthstone's system would make that considerably more common.
I'd also argue that, because of the lower inherent randomness in League, skill mismatches hurt way more. I can play a pro HS player and draw my way into a win sometimes, but I'm going to get wrecked by a pro league player 99 to 100 times out of 100. Expand that out to a full team, and that's a lot of people having unfun games.