While I know programming AI to be smart in a game like Phobies is extremely difficult, I wanted to put out the idea that the AI could copy someone's replay from that rank bracket and probably end up with a better strategy than some of the bots on the ladder and in Practice. Especially for the Arena mode which is lacking players and speeds people through the ranks so quickly that they inevitably end up facing someone much stronger than their average.
The AI could either copy their Phobie levels or fix the levels at 10, 15, 20, 25 for the highest difficulties/ranks. It's unlimited content since there are replays recorded at each rank every day and could be employed in the Practice mode difficulties. This could also be followed up with an overall reduction in ranked points obtained on new accounts in Arena.
While this would have an innate cost to develop, I think the long term effects of having an AI that can copy replays on the lower to middle ranks of the ladder and play those strategies would shorten queue times and give players a more realistic progression through a ranking system that is otherwise lacking players. As it sits, there are AI on the ladders that make massive blunders and offer little resistance to players.
This could also be a way for them to come up with Challenges since they could use high level replays as a "find the win in one turn" and allow players to experience premium units being used correctly to advertise them.