What happened to SC2 leagues?

Hey guys!

I recently came back after a brief break from SC2 because of exams, chistmas and new years celebration. When I came back I was placed from Diamond to Silver, which didn't bother me all that much, since it would not be hard to play back up to at least plat again.

But what happened to the skill levels in the lower leagues? I played this game versus another silver player which turned out to be real intense. My macro was allmost the only reason I won the game.

Replay : http://speedy.sh/XKXJT/What-happened-to-SC2-level-of-gameplay-2xSilver-that-do-not-belong-in-silver.SC2Replay

The game was played on EU if that has anything to do with it (allthough I highly doubt it).