Is misleading - you can keep it artificially low by not doing "village" updates which accounts for 90% of your defense rating... this results in inability to gauge your opponent properly when attacking artifacts.
You think you're going for an easy win (def rating 1000 or so) and then you encounter fully upgraded hero with golden troops....and lvl 1 seal
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To give you an idea on how ridiculous the defense ratings are. Here are a couple examples.
1. A golden champion increases the defense rating by zero points.
2. When I upgraded my peasant from level 10 to level 11 my defense rating only increased 5 points. A level 10 peasant has 845 health and does 220 damage. A level 11 peasant has 1290 health and does 325 damage. That is a major upgrade. Increasing your village archers by one level only slightly increases their power, but adds 100 points to your defense rating.