It seems that much of the problem comes from rating points brought in by newbie players (and note that, contra TFA, the problem isn't with experienced players losing to newbies, but the opposite).
A newbie is started off with some nominal rating; I forget the number, but let's say it's 800. Most likely that newbie is going to lose his first matches, and some proportion of those newbies will get frustrated and quit. For the ones that stay in the game, things probably work out in the long run. But for those that got discouraged and quit, in the course of their loss they caused a few points (not many, because they're likely way overmatched, but definitely more than 0) to be credited to their opponents. When they quit the sport, they're never going to reclaim any of the rating points that they lost initially. But those points are still in the system, having been added to their winning opponents.
It's hard to quantify because the Elo system is the only objective comparison we have, but over the course of the almost 30 years I've been watching my wife play, the Elo rating enjoyed by a player of a given hypothetical skill level has increased dramatically. Many are saying that for someone of the upper echelons, their rating is maybe 200 points higher than it would have been 30 years ago.
So back in 1991, my wife was in the top 30 women in the USA with a rating in the mid-1700s. Today, someone with that rating isn't even going to be in the top brackets of serious tournament.
Despite all that, the usefulness of the rating system keeps it in use as a valuable tool. It seems that the ability to match players who have never seen each other before, ensuring interesting matches, is part of keeping the game competitive for those in it. And table tennis is also, because of this, one of what I believe is few sports where men and women often play head-to-head (even though men generally have much higher ratings, on account of the sport requiring far more strength than you might suspect).