Ie: how can a 3 stripe red still be a smurf?

You need to stay in a rank for a little before you are allowed to gain it, so yes there's some lag between displayed league and what the system really thinks about your skill.

People suggested that ranks should be more like old elo, because that rewards newbies for staying with the game. Thus they only slowly increase to your WHR rank, giving more of a sense of progression.

The percentage is based on the actual WHR rating, which adjusts much more rapidly.

Besides that, matchmaking and casual rating are split. brianfreeman only gets to wear the fancy color due to his high casual rating, which doesn't mean anything here.