Naming is a definite no no but here's the explanation for you.
Tiers (Hack, Pro, Amateur, etc.) are achieved through playing enough official stroke play rounds with a low enough "average". Other types of play (practice, closest to the hole, match play, alternate shot, etc.) do not affect your tier.
Levels are based on the quantity of play (assuming you don't use level up boosts from the pro shop) and the type of play doesn't matter.
So, there are a certain number of players who avoid stroke play but still play a lot of other play so they don't go up in tier but do go up in levels. As a result, they have the skills of Masters and Legends, the equipment of Masters and Legends, but remain Hacks, Amateurs and Pros. That way they get shorter tees and easier conditions even though they have better skills and equipment.
Unfortunately many of them do it for the express purpose of fleecing unsuspecting people of their credits.
EDIT: frapp is absolutely right in his post below. My last paragraph above should be
"Unfortunately many of them do it for the express purpose of fleecing unsuspecting people of their credits. But not all. There are some wonderful low tier, high level players here."