Got it.

so lets say that season one members are way high in season 8. because they are so high, season 6 members are all in division three. but they are also good. this means that the new season 8 players have no chance beating these good season 6 players, but they are all in the same division because of the spread.

I may have missed it, but do you drop down divisions based on the results of the season?
I got bumped up to Division 1 after a season in Div 3 where I made finals mostly due to a bout of insomnia -- but my current standings make it pretty obvious that didn't last. So can I expect to go down to a division after this season where I think I may have a chance? Or am I stuck at the bottom of Div 1 from now on?

Divisions are calculated each season using each group's current level of progress. You may move up or down depending on where you fit each season.