Say average players of equal skill play USF, Sov, OKW and Wehr.
Their average ELO is 1500, except OKW player, who have 1800 inflated ELO because of the overperforming OKW units.
The adjustment would mean that 1800 inflated elo player would be dragged down to the level of equally skilled platyers after the changes.
In short: high rank scrub will not fight good players, but will be put against other scrubs as the ELO inflation is no more instead of letting them drop manually by loosing.
This is how I understand it.
The way I understand that is:
OKW players have a higher ELO than in other factions; because ELO is based upon wins and OKW players who play a lot get a lot of wins because of the nature of the faction
Hence their ELO is inflated
I observe this after playing OKW a lot in 4v4 and watching my rank go up because I get streaks of +8 or so. So in fact getting high rank in OKW is a matter of playing lots of games rather than actually being good.
What this will mean is that post-patch OKW will have a more normal distribution of wins and losses, but as an effect of that everyone whose ELO became inflated will suddenly find themselves playing above their skill level without the advantages they've had up to now and they'll start losing streaks.
In a period of weeks to months this will even out as people find their natural skill level.
In the meantime expect much QQing about OKW are nerfed to the point of uselessness from people who rode on the coattails of a broken faction to levels they didn't actually merit