As long as your aren't loosing playing time I think playing up a level can be great.
Personally I saw my greatest improvements my playing years when I was with others well above my level.
Everyone has a bad game. Give it a good shot. In fall ball last year, it was majority varsity players. I started off like 0-8 then got 5 consecutive hits once I found my grove, even pitched successfully for some innings.
Another thing is I would assume guys on your team are older and/or above your skill level. This can be great, for one it generally means better gloves behind you, and for two I have often seen players play up or down to the level of talent around them.