Maniac makes some good points, but I can also refer you to my old post on the dev forum which you never responded to, which responded to all of these issues you raise:
http://forum.webdiplomacy.net/viewtopic.php?f=23&t=47&start=0
Remember "Expected Result= Old formula* 3/4 + (1/7)*(1/4)"? Remember "If people join and don't play 10 games, they might as well not exist" ?
"From the average performances in a first game, a new player’s level is 6/10ths of the average rating. It would therefore not make sense to have new players with a rating of 100, since that would simply inflate the ratings of those who play against them. Thus, a new player should have a rating of 60."
So new players join at 6/10ths the average rating, and for each new game for their first 10 games they get 4

as a given to get them up to the average, going by the formula "Expected Result= Old formula* 3/4 + (1/7)*(1/4)" ?
So I guess if 10 new players join the first has a rating of 60, the average rating is now 60 so the second has a starting rating of 6/10*60, the third now has an average of (60+6/10*60)/2, so he starts at (60+6/10*60)/2*6/10, and so on down to the 10th? What absolute absurdity, how completely arbitrary.
You say the problems are not insurmountable, but you sure haven't said how to surmount them. And that's what bothers me: You have not yet produced a workable alternative. How can you possibly say my system is flawed when you have produced no alternative?! It is infuriating.
If the system has changed since you made that post: What has it changed to? Where can I get an exact specification? If I show a whole bunch of holes in it as I did last time will you ignore it again and come back in a few weeks with something different?
I know it's easier to attack my system with the same tired arguments than it is to defend your own, but if you actually want to replace the existing system your system needs to stand up to scrutiny