Also note that it says "95% of orders" not "95% of ratings." We get feedback, maybe, like 40% of the time if we're lucky. If you're not begging for ratings, you won't hit that number.
They aren't overtly doing much with the Star Seller program yet, but I can almost guarantee that they will in the future. I'm 99% sure it's already influencing search rankings (since they influence them in other ways already, such as prioritizing listings with free shipping). I understand some of that is to promote sales which benefits the seller and Etsy, but if they are or start using Star Seller to tweak results, that's not really benefiting anyone that I can see.