The other team basically spawn camped our team and nearly 8 people left/join. Is this normal a week into the game?

Level does not reflect player skill, only time investment. We tracked player skill through closed beta as well as during the open beta. It's very possible to have an extremely high skill Level 1 player (and if they played closed or open beta, we know about their skill level).

Another key note is that players can individual hidden matchmaking ratings for their gamemodes they play.