If this argument has now been reduced to "it's never going to work in the U.S." or "it will work in the U.S.," put me down on the side of "it will work."
Or, wishfully thinking, it could, anyway.
If I aspire to play in USGA events, or state Am events, or high-end weekend tournaments in my area, I know I need a handicap either to gain admission to the event, or to be flighted. My handicap, now, is basically what I tell them it is. Sure, the GHIN system calculates my handicap based on the scores I post, but given the scenario JohnV described in his opening post, there's already enough leeway and interpretation inherent in the system for a dishonest golfer to drive an EZ-Go through it.
If I have designs on either getting into a tournament restricted to lower handicaps, or cleaning up in the country club calcutta, I can Halmi my way to just about any number I want to use in a matter of weeks.
But if events that required handicaps required me to gain that handicap by playing in a monthly medal -- or some other form of stroke play event that used the rules of golf rather than gimmes, mulligans, breakfast balls, inside the leather and bump it till you like it -- that's what I'd do.
That's what thousands, if not millions, of U.S. tournament players would do, if required to do so.
They'd also play a tournament ball.