I like this idea as well.
And, maybe you could open a thread somewhere (Once your application is approved) where people can contribute their part in this by posting proofs about users who are abusing the system and deserve to be deMerited. I would probably report anyone receiving Merits without any efforts and then you may take back the Merits and send them back to where they should be.

Anyway, good luck convincing theymos for this.  That seems not to be an easy task in such cases.