It's the speed that I can't deal with. Even in the blitz formats where you get a few seconds back, I'll do too much thinking and run out of time long before my opponent does. And if I compensate by moving too quickly, I make mistakes I'd almost never make in a rapid game. Either way I still lose. At the lower levels of blitz chess, this game is just a whole bunch of weird openings and pure chaos. It's fun (sometimes) and addictive, but I don't think it's improved my play one bit.
I also think the pool of players in the blitz formats may be larger and for that reason full of stronger players at all levels (or at least there are more players out there better suited to blitz than I am).
There is nothing unusual in this. You can see the same effect in intermediate games, 1500+ - the only the difference is that the 'needle' doesn't swing as much, but in relative terms the consequences can be the exact same.
That situation becomes more and more rare as the rating of the players increases. You can also see good examples of it watching Levy's "Noob Arena" series. The lower rated players tend to just make moves with very little thought, no plan, and hang pieces left and right. Players in the 1500 range start to come up with semi-logical plans and do not hang pieces nearly as much.
There was a discussion years ago about the differences between players at certain levels. A GM replied and it went something like this: Below 1200, almost every other move or more is a blunder; at 1500 they only blunder 1-2 times per game; at 2000, maybe once per game; at 2200, once every 5 games, at 2500 once every 10 games.
The numbers may be a bit off, but the idea is the same. You can see that by looking at the statistics on sites like AimChess.
And with that, when players are blundering every other move, it doesn't matter much if they are 100, or 900. The match is "even" in that they both will have many winning chances left on the table.