The answer Tankovy has given is the same every mod that I have ever seen give. To your first point, syph0n, that is the way it is supposed to work as far as anyone has been told, but the process isn't perfect and it's further complicated by people becoming in/active in the middle of the week, and incorrectly sized hoods. (seems to me that the priority is size of the hood, not the composition of the hood).
To your second point, I can guess that you're in the same situation I am in. You're significantly higher in rank points than a lot of other people in your current age. I have nearly 1 mil points and just now at the end of Indy, compared to many players who are in the middle or end of PE, and only half of my points. If you're higher than the average point wise, of course you will be at the top of the hood. Since we didn't get the last merge we were supposed to have, I am one of the top 3 in my hood, and a third or more of an era behind nearly a dozen players across the hood. If you're not in my situation, I bet you're hood hasn't changed much then, no significant mergers in a few cycles. Then of course you're at the top as you progress, that is the way it should work who ever had the slight advantage several cycles ago generally keeps that advantage.
As to your third point, dang right we deserve a better system. I keep having to move on my tech because, despite my military GBs, my hoodies outstrip me militarily. A better system would certainly better suit more player's play styles.