Is hard to tell whether have always used that system or not - seems sensible to me, better than systems I remember. From what I can work out the complaints are around it doesn't tell you how they are performing compared to rest of class - it isn't comparative, but I can't really see that as important myself.
That is not important, interesting to know, but not vital to schooling. What matters is that there is growth, so the next report will be the interesting as you can see that they are progressing.

I have found as they get older that you can gauge how they are in comparison to the rest of the class. You can use that to see that if they are ahead, are they being challenged enough or if they are behind, what is being put in place to assist them.