I'm probably going to get eaten alive here for saying this, but there are two divisions in level 5.
It's called restricted, where most of the teams that show up to worlds should go. No offense to anyone.
Yes, no one likes losing to the same big name gyms for a reason, but a lot of teams who are "non mega-gyms" are actually stepping up and showing they can compete and earn medals and top five placements.
Agree with you that there are plenty of teams that have no business being at Worlds in the first place, divisions or no divisions.
That said, there are tons of solid level 5 teams that still have no chance of getting to top 10 let alone medaling because larger gyms are choosing from pools hundreds of athletes deep and thus create teams that earn the top spots year after year with ease. That's not to say those teams are not rightfully getting the rings/medals every year, but I do think divisions would allow for fairer competition and also give newer and/or smaller gyms a better chance at growing their talent pool and maybe one day ending up in the same division as the aforementioned "mega-gyms."
There was a period of booming growth for all-star cheer in the early 2000s and the gyms who already existed then are reaping the benefits of being ahead of the curve. It's hard now for newer gyms to catch up. Are there some that did? Yes. But anyone who starts a gym now or has in the past few years has a long uphill climb ahead of them before they'll get to the point where they can hang with the big dogs.
IMO, divisions at Worlds would promote growth because it would allow smaller/newer gyms to retain a higher percentage of their home-grown level 5 athletes because there would be a division at Worlds in which they could be truly competitive. As a result, with continued good instruction and business sense they could eventually grow to the point of being in the same division as the big names. Or not. Small gyms could remain small and the division itself would just become more and more competitive, just as the existing divisions have.
I think many people are looking at the possibility of divisions as an excuse to allow JankyCheer Allstars to win a medal and not have to really put in the work. I look at it as allowing gyms who have good, dedicated coaches who create level 5 athletes to retain those athletes and create true Worlds teams because they aren't losing as many kids to the huge gym an hour away, or they aren't held back by factors beyond their control (i.e. population).
In case my long-windedness made it hard to get my point, here it is: I think divisions are a good idea because they would level the playing field and slow the trend of traveling to mega-gyms just to have a chance at a ring.