The level advantage isn't that extreme, otherwise no one below max light would play it.
And I believe it used to becapped at around the 7 level difference mark. So by todays standards thats about 70 Light.
What that means is, you will have a very slight advantage over someone 10 Light Levels below you.
You will have a better, but still not game breaking/earth shattering advantage over someone 70 LL's below you.
You will have the same advantage as above over anyone 70+ LL's below you. See a 100 in IB? He can still kill you because the difference is capped, get it?
The advantage is relatively small, but you will notice it over time. I use a Supremacy (year-1 sniper) in Crucible usually but I can't use it in IB. I have tried but can feel the difference in the damage I'm dealing and taking because of my reduced light level.
If you are fighting players worse than you then you should still win, even if their light is higher.
If a player is better than you then you will probably lose against them, even if their light is lower.
Do you get it now? Its been this way since the second Iron Banana.
(because the first time they didn't add level advantage and hoped no one would notice.
They did.)
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Why is there a light level in pvp then if there isn't even an advantage? It's just stupid.