I regularly get my butt kicked by 2000 FIDE players and I am 2200 FIDE myself.
I really don't believe there are any significant differences in sheer strength, but rather experience.
A vastly higher rated player is usually a little older and has simply played more games, but that doesn't mean that they will just overpower everything within 200-300 points below them.
At Daily Chess the average rating is 1166. Even at a lowly 1772 I am in the 95th percentile.
I hear people saying a lot that 2000 rated is the threshold for becoming an advanced or strong player, but what does that really mean?