Your last paragraph holds they key: reducing the ratings range means you wait longer for a game. It's a matter of how long one waits vs the rating differential, and it seems most people prefer less waiting as opposed to less differential.
Your analogy about chess competitions is more applicable to tournaments, where there often is a rating requirement - the standard Chess.com knockout tournaments all operate within a 200 point range, such as https://www.chess.com/tournament/35th-chesscom-tournament-1401-1600. The Live Chess tournaments have similar rating ceilings, although there's also the "Open" category which - by the nature of internet chess - attracts entrants that normally wouldn't bother to enter a real life Open tournament because of the greater costs (of travel, of time, and of potential embarassment).
Casual play is less "competition" and more people doing something they enjoy - if you treat it as such, you'll worry less about your rating and the sort of importance and/or judgements you or others may attach to that number.
Caedrel,
Then you should re-read, if that is all you can tell. No, the definition of fairness is not that of chess.com. It is also not that of me. There is no universal "fairness" in chess competition, however in the biggest venues in the world, champions don't play one another with four hundred points difference. Go do your research if you think otherwise. And, accordingly, players should not be expected to so compete here. That's okay, however, if you'd like to pretend that the definition is my personal definition and contrasts that of some universal definition. Whatever makes you happy.
As well, while it is true that one can change the setting, unfortunately even within that two hundred rating, one can sometimes wait a great deal longer. Still, at least one can choose one's own variables, so there we agree that such is nice and shouldn't be changed.