My team in Naismith is upperclassman heavy and has the top overall team rating in D3. However, my overall rating is due to balance, not superstar players. The good part is it gives me plenty of options to hide my weaknesses and exploit the other team's weaknesses. But the other top teams have less depth, but more star power. Can I expect to struggle against teams who are top heavy in talent? Or does my team have a strong chance at beating teams with elite players due to my overall balance?

You can definitely do well with a balanced team.

While not an exact clone as you're stronger in some areas and weaker in others, the Knight D3 national champ thrived on depth rather than star power this past season:
https://www.whatifsports.com/hd/TeamProfile/Ratings.aspx?tid=13449