There could even be a 3rd option Ur not thinking about ....

..... Think about it, this is your war bro
& Aye ... Sometimes the problem is better than the solution.
Like ODB Said ... "If i got a problem, a problem got a problem til its gone" ... Meaning, If your giving me a problem, i will find a solution to that problem, my solution then becomes your problem, which you will find a solution for. So On & So Forth. That might not apply here entirely, i just think the more mediocre niggas won't have anything to look forward to & dip. That'll become the new problem ... Or atleast a decrease in current battling.
Ur right tho , it would make niggas like rhifle worry less about catching an L, and maybe try battling more skilled opponents. He might even improve.
Is it quality over quantity? There are no wrong answers, Just answers. The universe will find a way to balance itself