After reading the comments in the linked google group it seems like the issue is that they just need to more clearly define (and perhaps more fairly) what ‘merit’ is.
Each team/role should have this clearly defined to eliminate bias/subjectivity. Also by clearly defining that, you help escape a meritocracy where ‘authority’ decides what ‘merit’ is behind close-doors (which isn’t really a meritocracy).
Instead of abandoning a meritocracy because it has implementation issues, why don’t they just fix the problems?