Instead of coming up with a ridiculous explanation for the ranking system; just realize that Halo 3's ranking system is broken. Halo 2 had the right idea. Consistent winning meant leveling up while consistent losing meant leveling down. That is really as simple as it should be. The level 50 on Halo 3 now encompasses like 20 levels from Halo 2, namely the skill range from 30-50. There is not a large enough distinction in skill between high ranked players in Halo 3 as there was in Halo 2. Bottom line-- the ranking system needs to be fixed!
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