I think the level squish is different and more complex issue of an aging demographic.
They need to bring new players in but they have a massive amount a legacy content with spaghettified game play. So I think they tried to create a streamlined new player experience with a new starter area and right into BfA content. Completely bypasses 14 years of game content.
Probably the cheapest solution they could come up with and I’m not sure if it made the problem better or worse. Story wise it’s a disaster. Start the game with some sergeant teaching you to swing a sword and a half hour later you’re the hero and neck deep into the BfA storyline.