So the elo system is based on data. You should have enough data to have an “established” rating. Once your rating has been established (i.e. in GM level), you can reduce the K-factor so to increase the “accuracy” of the system (If the rating fluctuates easily, how can you predict the outcome of next matches??)
I don't see how this follows. In the Elo system your K factor is reduced after you have a certain number of games. This allows a new rating to adjust quickly to the correct level. The further reduction of the K factor at the higher levels is not to increase the accuracy of the rating, but to control rating inflation. So you can't assume that a rating is inaccurate just because it isn't GM level.
I've managed quite a few upsets otb.
But I don't think I've ever beat a player on chess.com ranked more than 200 points above me at the time of the game.
Maybe this is true for you but i have won plenty of games against people rated 200 or more above me i have also lost plenty against people rated more than 100 below me -simply put the standard at the lower level is not very good and at sub 1400 there are more mistakes than good play - making it more like a lottery favoured in the better rated guys favour rather than the loaded dice it should be and is higher up the ranking points you go