The points system is going to change in AG3. There won't be points anymore for participation in the community. You will earn points only from the games. Plus, you have decreased the points-needed-to-achieve-rank too much, with your point system virtually everyone would be a wood king.
Right now the developers are mainly focusing on building AG3 so they are probably not going to do any major changes in this version of the site. In AG3 the ArmorPoints system that we have now will be replaced by the New AP that will be rewarded for game playing and the Karma system that will show how helpful an user is in the community. As you can see the new system will have a totally different approach on AP so your suggestion wouldn't really work in AG3.
Armor Points have been discussed countless times... As for you idea, the points fro the ranks are MUCH too low. Also, merits are surely worth more than 5 points! They are not given out left and right, you have to earn them. I do not have a problem with forum posts being a single post, at 3 points, the forums will surely get waaaay spammy, as people would post post post about nonsense for the points (mores so than now). Game submissions are also fine at their current value, I'd like to see someone new to programming make an excellent game. Much more deserving then a measly 10 AP in my honest opinion. Plus, we are a Flash Game site, the games and game devs. are important! You point values also seem to miss game rating (currently also 2 pts).
The points required for ranking are much too low as I have said. You earn these ranks for helping out the ste, be it testing games, or contributing to the community via submitting games and posting in the forums. I can't help to ask if you did this because you want a much higher rank? With your system I would be a KING right now, and I know I don't deserve that at this moment.... Plus, AG3 will change this.
Armor Points aren't everything on this site. It's not something to care for or even strive for. Just be active in the Forums, leaving game reviews, rating games and possibly talking with others via messenger if you really want them. But don't worry about them, it's not something to care about. They eventually rise.
In AGv3 Armor Points won't matter. You'll get achievements and stuff from completing games and such. And you'll get reputation and/or karma points from community participation, I think. People will be able to vote up and down your comments and posts.
If I had it my way then I would do away with Armor Points. It would definitely get rid of all the spammers that really care for them and only go onto this site for them.
I also disagree with your point system proposition thing. Getting merits is very difficult and should get more points for them. As well as games, it's not easy to get merits on the site and it's definitely not easy to make a game that AG will accept. Comments shouldn't get Armor Points at all. It's too easy to chat with other people around the site and get Armor Points. So with no Armor Points for comments, let's see who sticks around the site. Forum Posts shouldn't get Armor Points either. That would do away with spammers that only come here for them. You should just be able to get reputation from it. Like in AGv3 people will be able to vote up or vote down your posts. And with your rank system, that's just terrible. There would be many kings around the site and would defeat the purpose of Armor Points. Even though they have no value. But how the site's run, just no.