I've made 2 posts in the thread inflation that have a bearing on the current point system.
I agree with Kestas about the aims of the system, but would like to refine them:
Ranking is secondary to Kesta's other declared objectives of the points system, I believe. After all, you can look at a players profile an see what % of games they have won/drawn/survived/lost. Hell, you can even go and look at every move they did in every current game to see how they play. So if you want to know how good someone is, you can tell.
Having said that, kestas, can we please have the % be of finshed games only, so your percentages don't change when you start a game?
With regards to the other objectives, they mostly revolve around the problem of new players and established players.
New players are obviously the life blood of a site, we want to engage and get them interested, so they stay and make the place the busy place it is.
The problem is new players are often unreliable, they are often not challenging to play, often go CD, don't bother entering into the spirit of the game (not replying to messages or swearing at you for example).
We all want to avoid playing this sort of player and the system's main objective has to be:
1) to allow experienced, reliable players (whether they are good at the game or not) to play together and have enjoyable games without suffering the player described above too much.
2) To allow new and inexperienced players to play the game against similar people and give them a chance to prove to the system that they are reliable (and hopefully also skillful) players.
As someone that was a new player not long ago I can see both these objectives are as important as each other. I can see that the existing system does fulfill many of these criteria, it's just no very good at ranking.
If you are lucky (or skillful) enough, the system can work quite well for you - once you get a couple of hundred points you could choose to play in games without the newbies and have some challenging games against reliable, skillful players. Winning here gives you more points (higher bets) so good players climb away from the newbie pack.
Or, you could hang around the newbies, playing small bet games with new players, who often go CD, building up your points (and thus ranking) without actually playing anyone that good.
It is differentiating between these 2 types of players that the ELO system is good at but the current system is bad at.