Of course they are all flawed, but in the end it comes down to what your entrants want, and expect. For basic club racing, a PHS adjusted handicap keeps people interested and mostly happy. If they buy a new sail, their handicap goes up, if they have three horror races in a row, it will go down, but they won't win the series.Aren't they all flawed in some way, and you should really decide what the aim of the race/series is ?
Are you looking to reward absolute performance, money, fleet size, consistent attendance, improvement, every one wins one etc.
Some boats can afford 4 jibs, some struggle to get 50% constant crew, some cruisers will go 10+% faster for an individual race with good crew, some turn up in all winds and conditions etc, some the same two boats win every race, and so the fleet gets smaller every year.
"Reward" is not generally seen as the only criteria for entry. Any boat has a good day if it beats the boat it wants to beat.
As I said above, a yacht that sails well, consistently, is the one that will be vying for the series win. However, if it suddenly, in one race, has an absolute blinder, its handicap change can be limited, and vice versa when they have a shocker. meaning it is not as easy to cheat the system.
But if you don't have enough of the yachts that are happy to race every week, without new sails etc, then the series don't last.
And then with IRC or ORC etc, if your yacht isn't favoured, it doesn't matter how hard to try, you will never win.