Actually, it has a very legitimate connection to reality. It is the way ANACS graded before NGC and PCGS came along, and it (in a slightly modified version) is the way NGC currently grades Ancients. I agree that it is not the way that the US coin market currently operates, and it definitely is not an idea that seems to be popular with many collectors or especially dealers, but to say that it has no connection to reality implies, at least in my mind, that it is something Roger invented.
Here is a question for you, Kurt, to which I would love to get a non-judgemental, non-sarcastic, honest answer - either here on the forum, or elsewhere (like maybe over a plate of ribs at Dreamland barbeque in Tuscaloosa): what is it about a grading scale based on empirical standards that does not appeal to you? It seems to me that a set of standards that remain constant over time, consistently applied, could be nothing but beneficial to the hobby.