A couple of questions about handicap and rating

[Uberdude]

Is rating volatility a bug or a feature? [Forked]

Imagine a rating system powered by a pre-cog (from Minority Report) which perfectly predicts if you will win or lose your next game. It thus flips your rank between 30k and 9d and has a 100% accuracy in predicting your results. However I think we would all agree this level of volatility is useless and a bug not a feature.