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Because you can't measure individual progress, or at least the system can't do so properly. Especially for supports, even more so when heroes have multiple potential roles(Such as Alchemist being a support, carry or mid). How would you measure a support's progress, because kills and deaths isn't possible, unless you want to make support incredible rare in pubs as saving a carry at their expense is a good move. Likewise, judging based on aspects like Wards bought will lead to very non-effective Ward positions so people can 'get it over with'.
A programmed system can't really see the finer points of a match, so it makes an overall judgement based on your win and loss rating. It's unfortunate, but that's how it has to happen so players don't get punished for playing a good support or overly rewarded for playing a good carry when it was only possible because of the team as a whole; leaving a report system for intentional feeders(Which would reduce their rank further) would be... troublesome unless manually checked, and Valve doesn't appear to do that. So that's not really fair; the best you could manage is that when someone abandons, is reported for intentional feeding or anything else, the match counts for nobody, but that defeats the purpose of ranked and could lead to stacking abuse by intentional reporting that fifth player when the others are four stacked to avoid a loss on their ranking.
All in all, the system is bad, but the system is going to be bad unless someone watches each and every match, analyzes it in detail and assigns a rating based on very strict rules. While it would create a lot of jobs, I doubt that's going to happen any time soon, and there'd be a significant delay in actual matchmaking results because of it.
Perfectly fair matchmaking is impossible to control because a person has good games and bad games and a computer has no way of knowing which any given game will be for that person. But how a person plays in a game is measurable. Valve needs to figure this out fast.
You can't measure individual skills via the computer because there's too many variables. What about a support who saves a carry multiple times, at the cost of their own life? Is the game going to go as far as calculating the potential damage output of the enemy team, counting in global spells, and determining if the support's sacrifice was worth it or not? You can't program something like that because of all the variables.
Saying what matters is easy, attributing a point number to each and every action, and then having them work properly, is another matter entirely. A computer will never accurately measure the way a person plays until it becomes sentient, and you need to realize that. A support who places Wards defensively in an area that spots rotations, by your point system, would score less points than one who Wards aggressively and may get a kill, even if the situation didn't call for it. Not to mention the Ward may not even be the reason for the kill(For example, a lane Ward that was in position while the enemy over-extended where vision was not lost on the enemy hero killed).
You can't measure some things in this game with facts, the same goes for many competitive games, because it's team based and subjective; when you judge things based on proximity or situations, you lose out on 'points' because the system, based purely on facts, can't recognize them. For example, it'd be difficult to properly program, much less distinguish, if a support should get more points for blocking someone attempting to kill their carry, or for disabling them. Sure, blocking takes more skill, but disabling is the safer thing to do.
Even if you could tack on a measurable quantity to everything, exactly how do you measure it in strict, arbitrary values? If you are a computer science major(Funny you never mentioned that before, eh?), then you'd have to know that you need numbers for each 'point' to count, yes? Then I'd love to know exactly how many you're going to put on what actions at what period of time and under which circumstances they occur, for every single action taken in the game. I'm no computer science expert, but that sounds incredibly taxing, easily abused or worked around, difficult to properly implement in its totally and sounds like it would be somewhat stressful on the servers, because not only would they have to run a match, they'd need to analyze it in its entirety, which is an increase in cost for Valve.
Every matchmaking system will be broken until they can analyze everything with the level of subjectivity and perception computers lack. There are too many variables in the sense that you really can't put a specific number on how skilled something is, or how not skilled it is, based on the circumstances; for example, does an Invoker who gets a 'blind' Sunstrike kill deserve less points if Bloodseeker is on his team, providing sight of the enemy and limiting dodges? Or is it the Invoker who guesses who deserves more, or is that irrelevant?
There are too many variables to realistically program a functional matchmaking system based on individual performance in a well-constructed, efficient manner that would be fair for each and every role, player and hero.