Does anyone use handicaps for flighting, play real golf in competition... payout to top half of flights?
or
If I understand this question correctly, the answer is yes. As a "for instance", the Carolinas Golf Association runs a ton of four ball and individual tournaments that have both a gross and net payout component. Some, though not most, are flighted, and the flights are based on indexes. In the tournaments themselves, you are playing "real golf"; playing the ball down, putting out, full penalties, etc. Interestingly, at least to me, the CGA typically pays two places in gross, three in net; I've always assumed that the goal is to give higher indexes a feeling that they have at least some chance to win; the guys that win gross tend to win more often anyway.
A couple of other notes about the CGA and indexes:
1. The CGA has and applies several rules for dealing with some of the issues that have been mentioned in this thread. In tournament play, they apply a rule that says that if a player betters his index by a differential of 15 or more shots, then he cannot win the net event, and his index is adjusted in the next CGA event that he plays.
2. In interclub four ball match play, which is a HUGE component of what the CGA does, players play off their low index for the last 12 months, rather than their current index, and the captains submit their lineup to the CGA, which then makes the pairings both of teammates AND opponents, based solely on indexes. The net effect, pun intended, is to really reduce the number of strokes given; it is not uncommon to play a CGA interclub match with only one or two strokes given, and sometimes NO strokes.
3. Again referring to interclub play, the CGA will reduce the index of a player for the next match if he plays a round and betters his index by a certain amount; forgive me for not remembering what the specific numbers are. We had ONE round on our team last year that was even close to the margin for this, so it isn't very common.
If you can't tell, I'm a HUGE fan of the CGA for a lot of reasons, including how they handle all of this stuff. But as has been mentioned, OVERSIGHT is a huge part of the handicap system if the system is run correctly. If a club doesn't do this, the system just will not work properly. This includes things like periodically reviewing the tee sheet to see if particular players are regularly posting ALL scores.
FWIW, I don't like losing to a guy with a suspect index any more than anybody else does. In our last interclub match, we lost 2 up to a team where a 8 index shot a 71. This guy plays 3 or 4 times a week, but when I looked him up, he had posted less than 10 rounds so far in 2021, and to get his 20th round, you had to go back to LAST JULY! And he had shot 72 in a competitive round just a week or so before he dropped the 71 on us. I don't like that this guy is doing this, but the easiest way to stop it is for the his club to do the due diligence to make the system work right.