So then what's even the point of resetting ranks monthly if you're most likely going to end up almost exactly where you were before the rank change? And allowing you to drop between 1-6 of a rank, but not dropping more than one level total. How much difference is there really in skill between a Platinum 6 and Diamond 1, but imagine the types of games the diamond 1 will get compared to Platinum 6.
From where I sit, the main benefits are that it 1) reduces the amount of time it takes to reliably find similar skilled teammates and opponents. 2) it discourages boosting and deranking. 3) mitigates issues where people skill levels fluctuate due to sporadic playtime
In the previous system, no matter how good a player was, they'd have to grind from level one. That meant the lower levels were a really a stomping ground for people of all skill levels (especially since it was possible to derank a main account), providing a crappy experience for people who were trying to learn the game. This system allows people to skip directly to where they belong after 10 games.
Boosting and deranking are discouraged as there is little incentive. Your visible rank will never drop below lvl 1 of your division, and it will be reset at the beginning of the month. No more false badges of honor, much less smurf donging (although free alt accounts has provided a work around for assholes).
For people like me who's skill fluctuates, resetting provides and opportunity to recalibrate my MMR. I started out a gold 1 in preseason, and grinded to diamond (solo) in all subsequent seasons. After my placement matches I always end up back in platinum, because my skills regress. Back in the day, if I came back from a hiatus, I'd have to do go on massive losing streaks before I'd find myself in satisfyingly competitive matches again. Now it's just 10 games that adjust my level of competition based on my performance in the previous match. Usually by placement match #10 I'm playing against the right people.