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And if you simply struggle at your current non default rank (you can't be demoted below A5) then focus a bit more on actually improving so you can say you actually belong to A.
But yeah, if you want to smurf, please go away and find another game (genre even) or just accept your character level and rank instead of trying to trick other people into believing you're worse than it seems (or better, depending on how you look at it).
Smurfing is actively harming other people's experience of the game, and all that for what? Feeling superior by defeating (possibly weaker) opponents that had no clue about your actual level? Soothing your ego by artificially resetting your stats? Take that L, improve, and move on. Accepting loss and getting better are core concepts in fighting games, especially since it's only you and your opponent (no team to blame or whatever people do in many other competitive games), so if you can't deal with that I'm sorry but I'll have to show you the way out.
I personally would like to reset my character level so I can get more currency to buy stuff from the in game shop instead of having to grind my way through characters I don't want to play.
Full disclaimer: I don't play Ranked so I don't feel nearly as affected by the issue you mentioned, but I can imagine it being frustrating indeed. However if what you say is true I'd also assume these S++ players are just passing through A rank with their new pick, so unless they really get stuck in A-rank purgatory, there should logically be fewer highly experienced players in A rank with time...
People playing alt characters is basically smurfing in this game, but you wouldn't want an alt character that you suck with starting at your current rank. However, 2 ranks below or 3 ranks below when you're Master is too much I think. Starting just a single rank below your main would probably be more fair. My highest rank is in S, and fighting B rank players, even with a character I've never used, isn't fair. It'd be better if I started in A.
That being said, there is absolutely no reason to want to reset your character level. You can't use it to smurf, and all it does is unlock goodies.
I don't have anything to add about character level reset beyond what I already said.
You start 2 ranks below your max rank on any character. It's still unfair as differences can be huge (my highest rank A means I get to literally stomp anyone who also isn't just playing new character in C rank if only because I already know how the game in general works and feels - even B rank feels unfair most of the time as soon as I get few matches with my new char).
So you want to to farm easy Rupies by relevelling easy starting levels so you can skip out on actually buying DLCs? Yeah good luck convincing Cygames to do that.
If they ever were to allow it and implement reset function, they'd move all rupie rewards to levels 300+ or something.
I bought out all Crane Game content by the time I was half-finished with first battle pass and since then I bought multiple pricey items from store (whole collections of useless stuff like figurines or those 2,5k items like colors and skins) and still have few thousands Rupies currently.
Do your dailies and weeklies, play some new characters once in a while, buy battle passes and more importantly - don't laser focus on buying all the crap in the rupie store as soon as you can and you'll be fine. If you want ability to unlock everything in the game for free mere 3 months after release (of a game that's trying to stay here for years to come) - you're the problem.