I do not think you have grasped the differences highlighted by EE.
A player with a "Saturated" average (such as TM#2 above) will have a WGT average that makes him look better than his actual abilities. The real average of TM#2's 500 ranked rounds played as a TM might be 70, but because his WGT average is based only on his BEST 50 ranked rounds played as a TM - his WGT average is much lower and showing 62
A player who is yet to reach saturation will have to have played MUCH better to have a 62 average. On average this player (TM#1) will beat TM#2 by 4 strokes over 9 holes - yet they have the same Average!
It is not true that TM#2 would have been promoted to Legend from TM based on their Average. You need an Average of 61.00 or less to move up to Legend.
Lastly - newly promoted players can have artificial averages both high and low. If a player took 1000 ranked rounds to get from M to TM, and then plays a round off the Easy Tees in their 1st game as TM, shooting 62 -- then the Average of 62 is flattering their abilities.
Some players play Single Play, high winds and UEL to get a 62 Average - while others play only Unlimited, Easy settings and restart every time they don't have a good start. These 2 players might have the same Average - but if hey do have the same Ave -- Player 1 will win over Player 2 easily every time.
I have looked at realistic ways of developing a Handicap system. I have 2 suggestions on this:-
1. Your calculated H/Cap should only be the default starting number. You should then modify these handicap figures based on results in H/cap events -- do well and it drops, do poorly and it increases. Some system of tuning is desirable.
2. The initial H/Cap could be better calculated from Stats or Score History. One way is to look at the Player Stats - average on P3, P4 & P5 holes.Let's say they are 2.9 3.7 and 4.5 respectively. Assume that a standard Par 72 course has 4 x Par 3's, 4 x Par 5's and the rest Par 4's. Based on these Stats - the player would be expected to score (4 x 2.9 + 4 x 4.5 + 10 x 3.7 ) = 66.6 I you assume that the best players are shooting sub-60 scores - then we could assign something like a 56 as a zero H/Cap. Your 66.6 would therefore repesent a H/Cap of 10.6
I know that these Stats are "lifetime" and abilities increase - but if the method is the same for everyone - then it is fair.
Another option is to take the last 10 single play rounds and base the H/Cap on those.
A third option is to host a H/Capping Event - where your club's Handicaps are set based on the results. This would be a SInge play, 4 x 18 holes over different courses. Players need to participate and finish to get a Club Handicap. I like this option - but then you need to run monthly events to allow players without H/Cap & new members a chance to get a H/Cap.
All other H/Cap methods than this last one, suffer from the same problem that players may choose to play only Easy or only Difficult events - or a mixture. For this reason - the H/Cap needs to be adjusted from the calulated starting point, based on performance against other H/Caps. Only in this way will the H/Cap numbers eventually align with player's abilities.
All food for thought - I hope this helps.
The Hakman