I think the ideal system is a marriage of the two. Use a measurement system to establish new ratings, modification factors, and a minimum deviation to prevent positive rating creep. Use performance data to maintain and refine the numbers of boats. You leverage the strengths of each to cancel the weaknesses of the other.
No single system is perfect, changes in conditions affect all results.
So I propose a compromise to the above system, run both systems; measurement and performance. Each boat/class gets rated for each system it wants to be rated for. Times get plugged into the computer and three columns are produced; scratch, a measurement handicap result and a performance handicap result.
There are already systems in place for each handicap method, adopt them in your local area.
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