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Let me rephrase. The system you described works exactly as intended. BGs were not created to increase the rate at which people gained ranks. Rather they were designed to control (and, in this case slow) the rate at which people gained ranks. BGs are much easier to keep track of than world PvP. Thus, it gave bliz the ability to slow down the rate at which people attained the higher ranks and gave them more control over the amount of time it takes to move from one rank to the next.
I'm not necessarily saying this is right or better, I'm just explaining what the system does.
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