Players are rewarded for playing frequently; not necessarily for playing well. even with the 40%-10% suggestion, you'd get about 120 PP for winning 10 games (assuming you were always playing against people of the same rank, which is optimistic), but 122 PP for losing 40 games (assuming you were always playing against people of the same rank, which is pessimistic). if you factor in the fact that losers will be playing with people with more PP, and if you try the alternate scenario where the loser gets ~25% of the PP, it's even more unbalanced in favor of "frequent losers"
Then I think the 40/30/20/10 solution works better (perhaps even 55/30/10/5). As for rewarding frequent losers, I think Turborilla wants people to participate most of all. The balance that has to be struck with this system is not to let infrequent good players win their half-dozen or so games and then sit on that pedestal without fear of being surpassed. I shouldn't have to suffer ranked under someone else who "isn't willing to burn for his swag", to appropriate a
Gangs of New York reference. If you want to be top ranked, you have to prove that you can win consistently,
and frequently. End of story.
The 120 PP for 10 wins vs. 122 PP for losing 40 is, as you say, pessimistic. And consider the fact that the guy playing 10 games and winning all of them can still say his record is better, and people will be trying to challenge him directly; it's then up to him to decide whether he wants to risk giving catchup points to other people, or if he's going to hide in his white tower of perfection.

So basically, what you're saying is, that a man who is 10 for 10 is better than the man who is 10 for 40. My opinion on that is...it depends on who he played against in those 10 wins, which is what this system tries to capture.
Players are rewarded for playing at the end of the reset period. games at the beginning of the month (when everyone has ~250 PP) would be worth a lot less than games at the end of the month (when everyone has ~524 PP). So, you'd always want to play at the end of the month. This might be OK, February 28th could be "Planet Mule Day" or something and the servers would be stocked

To be honest, if you waited until the last minute to play your games, you wouldn't be able to catch up in time. If everyone waited until the last minute, the PP totals are low so nothing is different.
That way people wouldn't be rewarded for losing.
You have to incentivize participation and placing as best as you can with
carrots instead of
sticks, because if MULE players consider "not 1st place" to be a complete loss, then why bother having the colony succeed? You can do more damage dooming the colony if doing so gives no points to the winner...and that's not in the spirit of the game
at all, IMHO. The attempt here was to subtly inform the player "you have more points to gain in helping the colony succeed and placing 3rd/4th, than purposefully ruining it; not only that, but the better the colony ending, the more points you stand to gain."