That's one way to look at it.. another scenario: let's say a bowler has worked at his game, learned to adjust to lane conditions, make his spares, understands ball reactions and equipment, etc. and is rewarded with his efforts by posting a 215 average. Let's say this bowler competes in the league with the handicap system you decribed below. Let's also say he bowls one night against a 160 average bowler, someone fairly good at the game but obviously not at the same skill level as the bowler with the 215 average. Mr. 215 bowls a nice game, say 220. Mr. 160 bowls a 178... who wins? What? a 178 beats a 220? How? Oh yeah.
In my opinion, it seems the lower average bowlers often argue that they should be handed victory through handicap rather than earning it by inproving their knowledge and skills. I've seen this attitude drive off the more skilled participants from the handicap leagues, limiting the learning resources for the less talented.
Just my .02
