We DO have dedicated servers.
First off and I will say this for the next hundred years SORRY we are fixing it. Its getting better slowly today and we expect that trend to continue, but what youre seeing currently is actually just an element of this complicated problem we do in fact use dedicated servers for matchmade games, but as an emergency contingency, MCC is designed to fall back to traditional peer-hosted gameplay in the event that there are connectivity issues with the dedicated servers. This can happen for a variety of reasons including intermittent unavailability of dedicated servers, poor ping times to the dedicated server datacenters, or network configuration issues that prevent you from being able to access the dedicated servers. Were busy getting stuff fixed and improved, and I promise you I will give you a full breakdown of what happened (and its multiple compounding things) after we fix it all. And Dan is going to update everyone on the situation and improvements later today.
And sorry for periods of radio silence, we're literally rushing around fixing stuff.