offering someone to stay a permanent O3/O4 as long as they perform (fly, teach, deploy) seems like a logical way to capitalize on that individuals skill set.
And there are many of us that would take just that. No reindeer games with timing, and FITREP 500 beyond being a solid performer. No pretending to like whatever obscure sport the CO loves (soccer? Meh) so you can get along.
I also think a revamped FITREP system that was more of an honest appraisal and less flowery BS, would cut down on the leadershipless backstabbers making it higher in the world. But since the people with the power to change the system made it under the current system with similar constraints, it's not going to happen unless it's directed from the outside, which in today's PC world, is also not happening.
Prime example. I write "performance appraisals" for people from laborers up to engineers. I can write "Operator-2 Y does not yet understand how to safely operate a triplex pump, but is learning. He needs to get more training on nitrogen pumping and well cementing before being eligible for Operator-3"
I didn't just wreck his career. He'll still likely be an Op-3 and then a Supervisor within a couple years.
Now imagine if you got a FITREP that stated "LT Y does not yet have a grasp on effectively leading a division, but has shown some initiative. He also needs to improve his landing grades before being eligible for CAPC"
You wrote something like that in a Navy FITREP, even though it would be TRUE for most first time DIVOs and noob 2Ps fresh out of the RAG, and you would kill their career.