The problem is when the lessor player decides he can't win and dumps the last couple games , or for instance the better player plays down to his competition ,
Things like this happening occasionally have pretty small influence. What we capture is an averaged performance over lots of games/matches. Suppose in a small fraction of your matches you give up or were drunk or didn't care or had something else on your mind. Consider this: In ALL those other matches, the rest of them, you sometimes benefited from playing an opponent who gave up or was drunk or didn't care or had something else on his mind. I'm not saying these things don't happen. It's just that their impact tends tends to be small.
players aren't stupid if thier trying to manipulate the system i don't see a catch fail ,, if a player knows he's on the wire of moving up over a said cut off point that puts him in a higher level how can you trust those matches he loses
There is no catch fail. A player can dump and have his or her rating influenced by it.
One of the benefits of having done this in my area for almost 7 years now is I can go back and look at the players who in the early going raised the same concerns you are raising now. And there were plenty in the beginning. People talking about hiding in the weeds, people talking about dumping or otherwise finding a way to manipulate the system and so forth. And when I look at those players now, 6 years later, I can ask myself a couple different questions. (1) Are they still talking like that? talking about manipulating the system or accusing others of doing it or having others accusing them of doing it? Answer: No. (2) When we analyze statistically the data for those players (who were going to blow off league to keep their rating low or whatever), do we find irregularities? Is their rating considering only league data or only the low-entry-fee weekly tournament different from their rating considering bigger events? Answer: No.
The last thing you mention is someone who is at 600 doing something to get to 599, or someone who is at 599 doing something to avoid getting the 600. This, I think, is a valid concern if we do something to create SPECIAL ratings. This is the reason we discourage, for example, having a big national event for "under 600." It is fine to have a 540 and under tournament, or a 620 and under tournament, of an under 400 tournament. That is happening more and more as regions are benefiting from getting players established. But these tournaments need to be mixed up. 520 and under this month, 570 and under next month, and so forth.
I think one exception to this caution might be defining an elite level, like having a rating above which a player may not enter an amateur competition like the SBE event. If you said nobody over 720 or 710 or 700 or (or nobody over the level of the US #100 player), then it is only a few players right near each bubble who even conceivably might be in a position to slip under. I say so what. Live with it. I think there probably will be none of it going on, though.
If I could show you my email inbox and show you every email I have gotten from shortstop and pro-level players, you might be amazed that in every single case the concern is why isn't their rating higher. "Do you have that time I double-dipped Sylver Ochoa?"