For now, I will not give an opinion on exactly how I would like to see the merit system reworked except that there should not be any merit source. The current system creates a two-tier member system (beyond the Brand new, Newbie, Jr Member, Member, Full Member, Sr. Member, Hero Member and Legendary members) therefore is counterproductive to the balance of the forum.
How would you like to see the merit system reworked? Make distribution fair, remove merit requirements for level up, modify smerit > merit calculation? Write now or don't complain if you don't like the new system.