I mean from my experience when there are 200-rated players who play stronger than some 800-rated players, the rating system is not completely working, it is rather a complete trash.
Smurfing/Sandbagging is a problem in every game. Not just chess. No matter how accurate your rating system is, it can't do anything against players who deliberately lose to play against low rated players. If that's the case, your issue is less about accurately calculating the ratings. Your issue is more about how to prevent smurfing/sandbagging. Because yeah, if this is your argument, it doesn't matter if any of the points you said before was true. It does nothing for your case. Your arguments don't account for players who deliberately lose to intentionally play against low elo players.
The only way for new players to break out of it is to actually play and improve. It doesn't change what you need to do. Because I had the same experience. However, I figured that after playing more games, it's not every game. And I slowly climbed to my current rating. Just play on.
I mean from my experience when there are 200-rated players who play stronger than some 800-rated players, the rating system is not completely working, it is rather a complete trash.