I think the proposed cure is approximately as bad as the perceived disease. Not much better, and not much worse.
The real problem is that the 100 floor is too high. (If it weren’t, few players would run into it.)
Dropping the floor to 10, or 1, or 0, would not make much difference. How much better is a 100 player than a 1 player?
The only reason to have the floor at all is to prevent the ratings from going negative. Another way to do this would be simply to raise the scale. Add 1000 points to everybody’s rating, on a one-time basis. That way, the current floor of 100 becomes 1100, which can then be lowered to the new 100 (formerly -900).
Of course, such a proposal would never fly, as people are accustomed to the current scale. So another possibility would be to allow ratings to go negative, say to -900. Trouble is, negative ratings are unattractive, and a rating of exactly 0 might be confused with unrated, depending how the software is written.
So it’s probably not worth it one way or the other. The proposed change is insignificant at best, and could be damaging in some ways, as John Hillery has pointed out. As for any possible inflationary effect from the current 100-point floor, there ought to be better solutions, such as reducing bonus points.
The proposal would create discontinuities, too. A player with an initial performance of 99 who then defeats a 200 would suddenly jump to 600 (based on 1 game), whereas a 100 player in the same boat would jump only to 200 or so. Something is wrong with a proposal which causes a 1-point pre-tournament difference to result in a 400-point post-tournament difference.
Bill Smythe