The ability to introduce randomization of reward around a layer of "skill issue" and plausible deniability for the matchmaker. Elo/bronze hell exists because even the worst players can just swing up and down their rank, whereas if you didn't had any other choice but play with whoever is in your local server (or LAN part, but I digress) then the only solution for you is to observe and adjust.
I'm from Greece and, we used to have lots of LAN arenas before fast internet connections became accessible. I'd get my face pushed by skilled people, and while I'd feel bad about it, the fact that I was playing with my friends and enjoyed myself made it all tolerable. Eventually I gave up feeling bad having negative k/d ratios, and could finally spectate and learn from others. The result was me becoming good enough to join my local CS clan. We never became best in the country, but I have really fond memories both from chilling as friends and highlights from matches.