on the one hand, I can see why hotels do this, there are tons of nitpickers who will complain over the dumbest stuff imaginable and I'm sure they're insufferable jerks in lots of other ways.
On the other, OP does have a point. there's an inherent bias in this sort of system. Someone who stays 300 nights/year is likely to have six times as many interactions with staff as me, someone who stays around 50 nights a year. When someone is reviewing OP's permanent record, they're probably thinking "wow this guy gets tattled on a lot" and isn't factoring in the number of stays he has. He very well might be considerably less of a pain in the ... than the 50-night guest even though he has 5 times as many negative comments.
If the goal of this program is to give properties an accurate view of problem customers, it's almost certainly a big failure.
Wow you summed this up perfectly. Agree 1000%. This system maybe, maybe had a useful purpose but is used the wrong way, allows anybody to basically put anything they want in it without any requirement that it be accurate. Agree it is a big failure and hurts their most loyal members in the process.