I remember seeing one of the developers (on the previous forum) saying it was only the average base score of your team, but also I've done a lot of testing in over 1000 wars. I'm very confident medals and squad level have no impact at all on match making.
Boog, typically as the squad level rises, so do base score of your players (as they upgrade things in their base with all those war win crates, conflicts and hard work). It can seem like other factors are playing a part in the outcome when they aren't. I looked at your squads base scores, your lowest possible team is well over the tipping point and can get matched up with the top squads including an all level X team. This is why you are getting bad match ups.
We have multiple squads and have moved people around a lot, for training and better team balance, we have put brand new low level players in near max squad level squad to do wars, no issue. We have started new squads with big teams and again did not get easy match ups. It was completely based on the team we sent.
Sand bagging is possible to avoid really big squads, some war teams have made it to top 10 on ksod by taking very low teams to ensure good match ups. Highly skilled players with low level (mini bases) can also play a big part in a war result.
XitLiteNtrNite, that wouldn't help them. Throwing 2 or 3 or 4 little bases in, with a team of Xs and 9s wouldn't help with match making. The average base score would still be too high to avoid the very big match ups. It would just reduce their ability to compete.
There are two ways to avoid bad match ups. Take a very small low level team of highly skilled players, so you can fight up if needed (i.e. all level 6s vs a team of 7s and 8s as a very simple example). This is a type of gaming the system though. Or take a team of all level Xs.
http://www.YouTube.com/ObiTwo (tips, strategies and layouts for rebels)