I guess my first question would be, in what way are they really good players? In other words, if all the players in the league are being compared to one another, how do you know that they would be good compared to say, MLB-level players?
I suspect the trick here is context. In the land of the blind the one-eyed man is King. If this is the only league in your baseball universe then I don't think it much matters what the league reputation is. With nothing to compare to, relative to the quality of the league, there will still be great players and rubbish players.
Now, if you then also had a league with a high reputation (say, MLB) and if the teams from your league played the teams from that league, I'm sure they would get crushed. It's all relative. You are merely, I assume, seeing players ratings as relative to the rest of your league, not as they would be rated if they were in a higher reputation league.
Anyway, that's my best guess based upon the information at hand.
