If CG didn’t do the squish it would become impossible to move up brackets after a year or so. For example, if the NCAA basketball tourney was seeded based on lifetime program wins, my Cincinnati Bearcats,12th overall by this metric, would get a 3 spot despite underachieving for the past 5 years. On the other hand, Gonzaga, a perennial top 5 program and number 1 seed would be stuck at an 8 simply because they have so many seasons to catch up with the old guard. GAC would be the same with new up and coming accounts stuck in low brackets due to this incumbency bias.
The squish forces players to continue to progress their rosters. I’m K2 with 3 GL’s & 8.1M. Couldn’t compete at K1. That’s okay - I haven’t earned it. But if I up my game or spending, I could earn it and don’t face a ridiculous climb thanks to the point ranges being regularly squished.