No, I don’t think it’s broken. For the most part, skill doesn’t correlate strongly to level. When you see a level 25, you don’t know if this is their first computer game, their 10th Overwatch smurf, or a Team Fortress 2 pro that just switched to Overwatch.
On the other hand, just because someone has a silver/gold portrait, doesn’t mean that they are any good.
The only thing that I would change is to use quick play data to help seed new accounts (this is not currently done: Initial Competitive Skill Rating, Decrypted) and make the default starting SR closer to mid-silver rather than high gold.