I decided to test the waters of the online this past weekend. Only to find out that this game doesn't have skill matching of any kind. As a fighter who is Level 1 with no fights, it continually put me up against dudes ranked 30 + and over 200 fights or so. Needless to say I got frigging destroyed. Went 0-5 and quit. I might go back to it later once the lag is figured out but seriously. No skill match? Brutal. 
 
Also, on a side note: Is it just me or does the AI get really cheap when you hit the A ranked fighters in Title Defense?

it sound like we are in the same boat.....I only have gone online 2 times my record is 1-6.....but boy was that one victory great :P I cant belive they reused that matchmaking system again......stick with it..cant say anything bout lag cause Ive been lucky i guess and havent seen much

Isn't there a ranked match system? 
I'm not sure how it works though.