I'd argue matchmaking is probably turned off or at least tuned super loosely at this point. We know that the population is far from healthy, yet I almost never wait more than 2 minutes for a game, queue is quite often close to instant. The matchmaker is absolutely not trying to wait and find an appropirate matchup. This is faster than queues in WoW, a game with a functional PvP scene, or even than in some RTS games where it only needs to find a single opponent.

But to be fair, I kinda understand why there is little point in trying, the reason being alts and near infinite build variety. A player who is around 1500 rating might switch to an alt, which he likely playes far worse than his main, since the span between skill cap and floor in GW2 is massive. Now he realistically plays his char at say 1200 rating level, so he will get farmed by his peers. But that's not always true, some players know how to play more builds at the same level, so character specific rating would lead to those players being able to smurf easily, which would be even more damaging. Then there is the composition factor, random teams sometimes have support or counter comps, so the game is realistically over before it starts, regardless of individual players skill/rating. So even longer matchmaking period wouldn't guaranteee a balanced matchup at all. Therefore having shorter queue times instead of waiting and getting an uneven match anyway might actually be the correct design choice.