There are 2 issues being solved by "newbie suppression".
1) Cases where the ranking of the opponent is not well known. Either because they are on a new account, or recently had a massive change in skill level (say, practicing on a different account; or not playing and loosing ranking points due to the decay mechanic).
2) Inconsistent play. Ranking systems generally assume skill level is mostly static, with gradual changes over time. In practice, people have bad days. Limiting the influence of any single game reduces the noise introduced by inconsistent play at the expense of making convergence a slower process.
I agree that those are real problems that need to be dealt with. I don't think suppressing the effects of a loss against a lower-rated player solves them very well, though. The suppression could just be applied in those cases instead of in every case where there's a large rating disparity.
There are plenty of cases where a highly-rated player loses to a low-rated player fair and square. In those cases there should be significant rating adjustments -- at least more significant than a normal game between similarly-rated opponents -- but this system removes those to combat edge cases. I think it would be more effective to deal with those edge cases directly.
1) Cases where the ranking of the opponent is not well known. Either because they are on a new account, or recently had a massive change in skill level (say, practicing on a different account; or not playing and loosing ranking points due to the decay mechanic).
2) Inconsistent play. Ranking systems generally assume skill level is mostly static, with gradual changes over time. In practice, people have bad days. Limiting the influence of any single game reduces the noise introduced by inconsistent play at the expense of making convergence a slower process.