No it's not lol. You don't see the big guys in for eg. boxing, ufc or even tennis go around and compete against random no names in random leagues
two things:
1. ufc is a league that has exclusivity. to my knowledge, boxing and tennis just don't have professional leagues like that. (i know boxing has shyt like WBA and WBO but i dont view those as just exclusive leagues)
2. boxing, ufc, tennis all got an exorbitant amount of money around (sponsors, tv deals, etc etc) and outside of boxing with the influx of streamers/celebs doin it, don't really have a threat of stagnation to its operation/"culture"to my knowledge. there's no real reason to do it for those anyways. Australian Open had a prize pool of ~53m USD.
Battle Rap aint scratchin that shyt, so i dont think the incentive to NOT battle for money against smaller names is really there outside of some top tiers/people that call themselves top tier thinking their brand gets diluted if they interacted with those who battled often.
I don’t think his peers look down on him. Danny is just not a big battle. How you market yourself is important. If Lux battled every week on every league, there would be no anticipation to see him.
You also mentioned two guys that have multiple kids. They got no choice but to battle.
Danny becomes a big battle every time he hits a super high level in my opinion. it aint like when Danny vs Roc got announced, nikkas just glossed over it
With the exposure comes risk, sure, but all it takes is one bad battle/mid performance for these mfs to act like they too good to battle
also, Lux set a pinnacle that I dont think he can hit anymore. He could battle once or 4 times a year, he's still up against himself in an uphill battle.