Chess Rating question, what does it mean?

[NYplayer]

why does this occur?
in the professional chess world, the highest rated players are rated around 2800 or so. 10 years ago it was slightly lower.

On the internet chess club the best humans get speed chess ratings of up to 3300-3500 (although 3500 is not sustainable IMO, just where people peak).

Why is there so much larger of a range online in speed chess?

is there more skill (mouse quickness, etc) differentiation than in live slow chess? I'd imagine that the rating formulas are the same in figuring out how many points you should win by beating an opponent of a given level. and that translates into player A being x points above player B beating player B y% of the time.

or could it be that players of vastly differing levels rarely play live. However, online a 3000 may play a 2200 20 times and that the formulas break down when gaps in ratings get too wide?