This was a question I ask after hitting 2500. I was curious what exactly I measured up against other players so thankfully raiderio in fact tracks this information:
1600 puts you in the top 40% of players.
2000 is top 25%
2500 is top 10%
2700 is top 4%
3200+ is top 0.1%
1600 making you better at M+ than over half the players in the game was a surprise, but then I realized that there are so many people that probably do a few low level M+ and immediately know they hate it and don’t wanna do it anymore.
It doesn’t mean anything. It’s just a score applied to you for doing dungeons.

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Also people like me who have 10 alts that have only done like 1 or 2 valor keys. I don’t know if they are included in the rankings or not but that is probably bumping the percentiles down a lot. The alts are just too cute, I can’t ignore them the whole season LOL
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Hey, are Oh Brother and Oh Sister related to each other? I see y’all a lot in Valdrakken.
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Yup, Oh Brother is the Horde guild and Oh Sister in the Alliance guild.
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Aww that’s so cute, good job 
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At least till Tuesday, when we can cross faction guild and we will only be using Oh Brother.
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Nice! We just deleted MooningHowl for the same reason.
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What is the Horde guild? Tbh, I don’t pay a lot of attention to what’s going on around me in Valdrakken.
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Ah, it is all HowlingMoon now, the three horde characters we had are just going to join the Alliance guild haha
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Oh okay. We are primarily Horde, but we’re a small guild. It’s mostly IRL friends and we do a lot of M+.
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Cool! Well maybe we’ll run together one day. I like M+ too 
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Since we’re already derailing this thread, I can also 418 any BS items, idk if anyone on Alliance can do that.
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Oh nice! I’m not sure how all that crafting stuff works, I did a public order for Elemental Lariat and someone was nice enough to help me fill that with a 415. Will crafting be used a lot the next patch? I sell herbs that I get while leveling but I guess that’s not specific to Velen anymore.
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Yup, you’re going to be getting a new spark to upgrade old gear and craft new gear.
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Have you considered it means that it’s top % of player engaging on the content and nothing more? I dont understand why you think you have to make it sound like some nefarious thing.
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You assume I was trying to make it sound like some nefarious thing, and yet I had zero intention of giving that impression. So now I ask the same question back at you - why did you just assume I was putting negativity behind this and not simply making a point of observation (or in this case, conjecture.)
Its just a rating system. Not more, not less.
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You’re also not factoring in the fact of another group: people with the SKILL to be 2500, 2700+ etc… but don’t have the TIME.
M+ is a massive time sink.
And without getting into the discussion of just that basic fact, let’s just use me as a further example: my primary focus is Raiding, not M+.
So my limited game time is already eaten up by Raiding requirements. Those are demanding enough. Now, Blizzard puts ANOTHER game system that also requires tons of time.
I dabble in PvP from time to time. You know why I hardly touch it any more? Not because it’s a constant dumpster fire of imbalance. Well, that’s a lot to do with it, actually. But also because I JUST DON’T HAVE TIME.
Everyone has these tin foil hats schemes of why MMOs/WoW isn’t more popular. Why it keeps bleeding subs. Is it BfA? SL was terrible? WoD lacked content?
When the obvious is staring them in the face: most people don’t have TIME for this!!