I agree that merit system will be removed but once the merit is removed i would like to suggest that instead of merit for you to ranked the merit will be exchange to good quality post. As you can see it would be more work for moderators while new comers can rank by posting good quality post instead of earning merit. In that way ranking up still hard but not like the merit system. Iny opinion replacing meriy requirements to good quality post will be a great help to newcomers creating good quality post and to older accounts.
I've read your post three times, and I still don't understand what you are suggesting. You seem to be saying that there should be a moderators meeting to discuss each individual member, and choose those who deserve to increase in rank. Well, there is no chance of that happening, even if Theymos could justify the expense of the extra mods.