With regard to TER, I think it can cut both ways. Thus, I like the one year limitation, if that is the case, for TER. Anything to help preclude a strong player with an artificially low current rating using a high tournament entry rating to get into a high rated tournament.
For example, say a player at 1250 uses a high TER from the distant past to get into a 1800+ tournament. Then there is me the 1850 player, unsuspecting entering the tournament, expecting to play 1800+ players or so. And then find a player 1250 in the tournament??
Thus, I am at 1850 and I enter an 1800+ tournament, and then find one of my opponents has a 1250 rating. He used a high TER from years ago to get into the tournament. Sucks. If I beat this lowly 1250 player, I get no rating points (maybe 1 point), and if I lose, I get killed on rating points. But he is a strong player.
If one (e.g., me at 1850) cares about their numerical rating, it is not fun to play an opponent who has a 1250 rating but in reality is an 1800+ player.
Of course all scenarios discussed in this thread I guess are technically within the rules. I am not too bothered by it.