I believe intimidation teams are always a factor in sports. While it is tough to stay on top and that puts added pressure on the reputation team, it can be unnerving going against a team that you know has won a major tournament. Mentally, it can "break" your spirit when you make a mistake against a team like that and when a team's confidence is shaken it definitely can hurt their performance.
I remember playing high school baseball against a small town team from Iowa that had won 20 or so state titles. Their reputation going into the game was already unnerving, but for warmups they would do this pregame routine that they had worked on for several years going back to little league and you could feel your confidence decline during the warmup. I got to know several of their players after high school and they told me their coach believed it gave them a 3-4 run advantage each game just on reputation and watching their warmup. I had to agree, it was intimidating.
But, on the flipside you should always pay attention in those games, because those are the teams you learn the most from and paying attention and practicing what you saw later will raise your level. As the saying goes... Iron sharpens iron.