My 2nd draft class was recently published. It has provided a potential answer to my question. I noticed that the vast majority of players, particularly those from my feeder leagues have no level of competition displayed, for example here is one prospect,
as you can see no level of competition is listed.
However, for a few players, apparently fictional prospects from real world colleges like Texas, Stanford or Iowa, they do list level of competition.
So i guess my question becomes "Is the level of competition indication only for prospects that don't go though feeder leagues?"
I suppose with feeder leagues all teams in a league face similar schedules so perhaps the only real difference is between high school and college.