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But you are comparing to the past system, where there were also arbitrary cut off indexes where strokes were given or not. A difference with the past is not wrong per se...
When it comes to match play, the old system could definitely be improved. All this discussion of handicaps has made me realize I could send a proposal to the USGA on how they can make things work better for match play.
I believe Knuth devised the system for medal play, and the cut offs are not arbitrary in medal play, because medal play is about score, and the handicap systems are based on scoring averages.
So let me rephrase in medal play terms.
Yes, I find it wrong, because if he plays in a competition on the white tees and shoots 72 his net score will be 71 while players with index 0.1 to 0.4 will have net score 72. They used to have the same net score.
And, I find it wrong that if he plays in a competition on the black tees, and shoots 72 his net score will be 72 while players with index +0.1 to +0.4 will have net score 71. They used to have the same net score.
Does it not seem to you that the players that establish a handicap index from +0.4 to 0.0 to 0.4 based on their scoring averages should have the same net score in this situation in medal play events?