The whole point of telling him that he is worse than the people he lose to is to set his mentality about the game. You have to understand, the only evidence that speaks about who's better against each other is who wins. Nothing else. Once we accept that, we can begin to seriously focus on what is causing us to lose. If you think, "well, i'm just overapplying my tech skill, so i actually am better than him", then you are only undermining your own focus on getting better, because you aren't actually exploring why you lost. You always have the idea of "well, in reality, i'm still better" to fall back on.
In order to get better at smash, or nearly anything in general, you need to discard such a mentality. You know that you have better tech skill. You know you can play decently. So you must examine closely why exactly you aren't owning these "noobs". Maybe you are becoming sloppy, and running into their smashes everytime. Actually look at your opponent. If he is being predictable, punish him. You have more tools available to you.
The topic creator talks about how he doesn't want to play "noob" style, but I find this sort of mentality to be poor for competition. You don't get extra points for being flashy, or to do combos. Consider two marths. One of them can do combos, wavedash, and do all kinds of fancy stuff, but does poorly in real matches. The other marth just stands there and fsmash. But the second marth always does better in matches. The second marth is definitely better, then, even if he doesn't wavedash, or dashdance, or shuffl. If he just sits there and fsmash, and succeed, he is a good player. the other player who can combo but doesn't succeed, is a garbage player. Unfortunately, the garbage player will think to himself that he is better than the fsmashing marth, and this blinds from actually focusing on what matters.
Of course, i'm not saying the people at your school are good players. They aren't. However, if they beat you, it does go to show that you have some serious issues to work out with. From personal experience, many people go through this phase, where they focus on technical skill, but do not play well.
Unfortunately, this sort of skill doesn't come from playing computers, and you need to play other players. Next time you play, don't attack or be aggressive. Just get just within fsmash range, and observe what the player does. Don't just run in with a shuffle. If they are rollilng, just try walking up to them, and see if they roll, and which direction. Next time, if they have these bad habits, just walk up, and fsmash accordingly, or run up and grab, and perform a combo.