I disagree. If I only gave merits to exceptional posts, the majority of them would probably be handed out to Legendary members and I wouldn't be helping members rank up, which is an important thing to a lot of people. The merit system was intended to make it difficult for shitposters to climb the ranks, but it's become clear to me that there aren't a lot of members ranking up in general--and I don't think Theymos wanted it to be that hard for "good" (but not excellent) posters to rank up. I was tempted to write "average posters" but average around here means garbage shitpost quality.
The merit system is not confined to the awarding of single merits - Exceptional posts can receive awards of up to 50 sMerit. Of course I don't know what Theymos intended to be the primary motivation in implementing the merit system, so I have to guess, and that means that I introduce a bit of personal bias. My impression is that the merit system has two functions. One is to deprive low value noise posters of the rewards that are available to higher ranked members. The other function is to improve the quality and variety of the thread topics in the forum. Without the quality topics and posts, then there is no value in trying to achieve higher ranks, and the forum will start to lose the members that make it the valuable resource that it is at the moment.
We are entering into to period of unprecedented economic change, and I hope that Bitcoin Talk will remain a leading discussion forum for the shift from fiat currencies to cryptos over the next few years. To enable this, we will have to retain and recruit some of the leading players.