I will add that the main point about ties inflating rating is not actually about potential abuse. No matter what the system does, there is probably a way that players can abuse it simply by rigging games. The problem I was pointing out was that players could see their rank rise if they legitimately tied over and over again. So, they are not trying to manipulate the system but they just happen to keep tying.
In terms of player skill, what do these results suggest? If two players repeatedly tie, it is probable that they are extremely close in skill. This is reasonable, right?
So if that is the case, how should rankings be adjusted? Well, if the two players are very close in skill, then their ranking should be very close as well. And if at first their rankings are different, then the logical conclusion is that a tie should bring their rankings closer together. And if the rankings are supposed to get closer together, then the clear way to do that is to increase the rank of the lower ranked player decrease the rank of the higher ranked player.
Now, there are other possible ways to do this. You could increase the rank of the lower ranked player and not change the rank of the higher ranked player. But this does not really make sense in the context of a system with more players than just the two in that tied game. In doing this, an assumption is made that the higher ranked player is correctly ranked and the lower ranked player is not, thus requiring the latter's rank to increase. But that is a strange assumption to make; the natural assumption is uniform, that there is some uncertainty in EVERY rating, and therefore we see the two ranks increasing/decreasing to get closer together.
Does that make sense?