Hmm, everyone has a different preference as far as playing style.
Normally I would agree with the idea of player-skill in an RPG (or at least a certain degree of it) rather than the fight being determined simply by how much you've power-leveled.
However, in this context I don't, for one simple reason: lag. Even the best of us lag around a bit. For the worst of us, combat will be impossible due to lag, which means (at least for now) they'll have no way of getting decent experience.
In an internet game, determining the winner based on 'player skill' is pretty much just determining the winner based on connection speed...