Here's your flaw, again:A 50 people server gives the MVP 705 points.
You only need to create a new WOL account, play and become MVP once.
Suppose you get 10 'zero point' loses on 2 vs 2 games on top of that:
now for the rating system:
(705/11 = 64) + (705\1 = 705) = 869.
Your flaw is, that you can blow up this new stats completely by having a single peak hihg point score, and lots of zero score losses.
You'd call this measuerement of averages vs. measurement of mean value.
Your AVERAGE may be very good, but your MEAN value sucks like hell (it would be pretty close to 0 in above case).
Fill in anything in the above example. Maybe get not 705, but anything that would give you more than threehundred ladder points, would make it possible for you to become instant ladder leader.
That is bad.