"Keep It Simple Stupid"
If Richard's eyes "glazed over" when he read the mathematics of the proposed player ratings system, mine positively popped. Not only did the formulas leave me baffled, but there was no clear explanation of what they were actually trying to achieve. Since I'm not a total dufus when it comes to maths, I think it's fair to assume that there are others out there equally driven to snap their pencils and walk out of the Bree exam early.
I'm sorry to be negative, and I do appreciate the large amount of work that someone's put in. BUT, I think you've drowned the baby in a bathtub of arcane algebra. For a player ratings system to work, it needs to be popular, and to be popular, it needs to be easy to understand.
In general terms, I can live with the principle of the Valar, Maia and Ainur ratings - though the names are "too clever", and therefore not functional - one has to keep looking them up to find out which is which. Substitute sensible labels "Team Rating" "Experience Rating" etc. The Istari rating (VPs or NewVPs) stinks. It's precisely what most of us are trying to leave behind. I agree with Corsair 101 on this - a Voting of Peers system would be the best way to rank individual performance within a team (yes, of course there are issues - it would need to be controlled by gentlemanly guidelines, such as no canvassing and no voting pacts).
As Richard said, I have drafted a ladder system for "scoring" a Team Champs competition. Only Clint and Richard, as far as I know, have seen it. Clearly demarcating games "Team Chamionship Games" and "Normal Games" would also answer the concerns of those who have said they would leave Middle Earth rather than be rated. The ladder is ongoing, like a chess ladder, and was written when it looked like we were going to have a Team Championship. It rates teams by relative position only, not individuals. Whilst it is not completely KISSable, it is reasonably straightforward, with basic "rules", and more detailed ones to resolve unusual situations. I _could_ tidy it up, and publish it here, but the effort doesn't seem worth it, if, as now seems to be the case, a separate Team Champs is no longer favoured.
Laurence G. Tilley