You're considering what the USGA does in tournament play when people play various tee boxes using handicap. That's not the issue. The issue is the variable of change between establishing a handicap from the proper tee box, and moving back for a tournament or casual round while utilizing handicap. It's flawed for any golfer in that scenario.
you're considering that every tournament should be played from the same set of tees. i'm saying maybe this whole thing is moot if we start letting people play the tees they think are appropriate for them, or the tees for which their handicaps are currently established. again, that doesn't mean i'm saying you're incorrect in saying the system is flawed, because my fix wouldn't be necessary if the system worked.