As to taking some out...is there a reason to take some out? Cuz I think more is better. As I tried to explain, it would allow for a greater range of ranks and give incentive to achieve higher and higher. With 6 - 8 rankings, I'd be afraid there would be a lot of stagnantion...seeing the same medal next to your name for long periods of time. It might give the medals less impact.
As to being ornate...I definitely hear you on that. In fact, I tried looking up medals on google to get an idea of the type that are given to non-military types. And some are ornate...However, it's difficult to get ornate in a 16x16 pixel graphic. It just won't happen.
And finally, all new players would actually start out at the "Apprentice" level with an introductory ELO rating of (what I think would be, correct me if I'm wrong) around 100. So yes, the single dot denotes a new player with no games completed.
Since the ELO rating can fluctuate below this entry level, I chose a green (as in inexperienced, new, fresh...or tarnished) medal that represents a backwards progression.
The game of Diplomacy assumes you are the controller of a country. If you are new to this (at least as far as phpdip is concerned) you'll start out as an apprentice like in any job market, or one who is new to the controller-of-countries markets as a graduate of the school where controller-of-countries go.
Backwards progression at the apprentice level would result in "going back to school". Thus you will have been deemed a graduate, with a single green bar. More backward progression will lead you to being a Senior and another green bar. And at the bottom of it all, is the student with three green (inexperienced, new, fresh), tarnished bars.
I'm just trying to explain fully the method behind my proposition, so if there's a better idea, I'm all ears. That is if there's interest in this.
Again, an ELO rating as a number would suffice just as well, I suppose. But then we'd just be staring at two different numbers...points and Elo. Might as well make the rankings fun and even funner to look at. :)