For a genuinely accurate rating system there should be a few things recognised in the algorithm:
1. WTA games and PPSC games must be treated differently, to respect the different objectives.
2. It must reward beating a better player more than beating a weaker player.
3. It must not inflate, as if it does more prolific players get a huge advantage. The same is true for deflation in reverse.
4. Players should not get artificial boosts or rebates
5. All games should be equal. This stops "all or nothing" players, as well as stopping the "meaningless" games we see. For variants, an unrated game option would be good, and would go hand in hand with a proper rating system by not corrupting the results for "pure diplomacy"
Once all of these are done correctly, you have a perfect rating system, unless you consider other things, such as this argument of "gameplay management" where the current system has be argued better because of the way people are encouraged to play by it.
I am afraid that Zarathustra's system doesn't seem to check any of the boxes as far as I can see, so probably isn't that good.
A word such as perfection needs defining. Kestas' is right that a truly perfect rating system is impossible- you don't look at one game and say "He played at such and such a standard in that game". What you do do is say "He beat such and such a player, so must have played better than him" Here we enter the realms of statistics, where nothing is exact, and balances must be made. But we can have the perfect balance. Deciding on the perfect balance was the one very hard part of designing an Elo-system.
I challenge any of you to find an unfixable, inherent flaw in the Elo-rating that Cannot be fixed without removing the fundamentals of the system. I know I can do that with the current system.