Sorry mate, but you are wrong.
If K1 entrance bar was being asking the top X players in the game, then you were right, because everyone been impacted. But since there bar is a certain amount of points - 3610 IIRC - then you are mistaken. I now have about 3460 points, and without the squish I would have about 3750 points, that would place me inside K1.
If CG will continue squish 70 - 80 points every season, eventually no-one will stay at K1. That's simple math.
I'm also sure you will find that K1 got much smaller during the past 4 months