The divisions should have a maximum rating for all players from all teams playing in that division. For example Fischer no rating limit; Spassky 2000 rating limit; Kasparov; 1900 rating limit; Alkehline 1800 rating limit. This way players would be more likely to be matched against players of a similiar rating for matches.

I personally think it would cause problems. I'm unsure how set examples are but assuming your figures are used a player with a rating of 2001 would only be able to play in Fischer Section. As we have 6 teams in Fischer Section that leaves a maximum of 36 players over 2000 that can only play in Fischer and considering that at my count we have around 35 players over 2000 that presumably want to play every week it will cause problems even if they could hypothetically get into teams in Fischer.

For smaller teams it also causes issues as if a team has a normal roster of 5 players and one of them has a good season and their rating increases above cap then either whole team has to go up a section for 1 player or player who has done well gets kicked out of team for winning.

As an extra note if you have a team with 1700 average and one 2001 player and another with a 1950 average with strongest player being 1999 does that mean team with a 1700 average is placed in a higher section than one with a 1950 average when groups are formed?

If having suggestion implemented I would suspect that best way to do it would be to have it linked to Section Limit although whether a % or static increment (i.e. Section + 250 vs Section + 25%) is best is hard to tell.

I think different rating balances even the situation out. Team with high rated top boards has relatively lower rated lower boards so the matches remain fair and competitive.