On the other hand, 343/Bungie had access to masses and masses of hard statistics that you do not, so I'm inclined to believe them when they say things about such, rather than the anecdotal accounts of a few near the top of the food chain.
Hard statistics and anecdotal experience are not the issues. The real issue is the reasoning behind changing the system. Essentially, we are told that we can't have nice toys because there are those that would abuse it.
I think that's a poor reason to remove a visible 1-50 rank. It certainly doesn't deal with the heart of the matter, which is the douche abusing it.
It's silly to think that a developer doesn't have the tools to police the cheaters. The banhammer works... and could be expanded to include a specific 360.
Absent of the boosters and cheaters there is very little wrong with it. One could definitely say the H3 system, and its being tied to TrueSkill is flawed... fine, sever it and make it more like H2 with wins and losses being the mover. Tighten TrueSkill match making behind the scenes... and punish the cheaters severely.
Explain to me why this would not work, and why this wouldn't be a better solution in the end.
If you want to keep the carrot on a stick thing still active, it should be extremely difficult to get up to a 50, or even the 40's. Once you hit 50, what's the point in playing that playlist? In H3 it didn't matter since your 50 locked but if this was another game, and you're sitting at max rank, why continue playing it? You risk losing it, but you never advance anywhere. That is a major problem.
I fully realize this is anecdotal... but bear with me... I had a FL with mostly 50's, and most of those with multiple 50's. I did not know a single person who stopped playing a list they enjoyed because of their 50. The only people I knew that would not play in a list for fear of losing a 50, were those that likely WOULD lose there 50 because they were on the bottom end of the skill pool among 50's, or were not really a 50 at all. The one thing that did change a bit, is that my friends may not enter a list without a full party of legit 50's. Even then it was a mixed bag.
What's the point in playing you ask? That depends entirely on the individual... and herein lies the reason why your question isn't a major problem. For every person that wouldn't play on it, there are people that not only would play on it, but have a sense of pride in playing on it frequently, and keeping it.