A 400 BCX/L10 Card earns 10X as much as a 1 BCX/L1 Card
Meaning: When you combine Commons to L10, they lose ~97.5% of their value. When you look at the formulas and examples given in the Proposal- you can see this for yourself. A level 1 card would earn 1/10th of what a level 10 card would (in the proper league) which is great! Right? I mean, who wouldn't rush out to spend 400x as much, in order to earn 10x as much?
A less extreme and more realistic example would be:
L1 vs L2 Rares in Silver League. Each L1 Rare (including the Summoner) fielded on a winning team in Silver would earn 1/2 of what a L2 rare would on the same team (whether it's fielded as a L1 or a L2). Which is GREAT! Right? Who wouldn't rush out to upgrade all their cards to L2? I mean, you can make 2x as much- just by fielding L2 cards!
Except- L2 Rares are 5 BCX while L1 Rares are 1BCX.
Meaning: IF there were bots playing in Splinterlands, you could just field 5 separate accounts with 1 BCX/L1 cards and make 5x(1/2) or 2.5x as much as you would by combining your Rares into a 5 BCX/L2 and fielding just one account.
5BCX/L2 cards are worth 2x as much as a 1BCX/L1.
Who would ever combine their cards (to L2), knowing that just by combining them- they would immediately lose 60% of their value?
The Latest SPS Governance Proposal favors bots over players and actively discourages combining/leveling cards
Implementing this Proposal will make it (2.5x) better to run 5 Novice (1BCX) accounts (in Silver) than one Bronze account- let alone completely negating the utility/purpose of actually fielding Silver leveled cards, in Silver League. Yes, botting massive amounts accounts only making 2-300% more than playing leveled accounts IS a reduction from the current situation- meaning accounts that are leveled will make a little more, while climbing the ladder over the masses of botted Novice accounts in Bronze and Silver Leagues. I just don't think it will lower the bots' % of the Earnings Pool- at any level.
In Conclusion:
I agree with 
Starter or 'Ghost' cards should count 0 towards earnings. I thought that was originally part of the Rewards Rework but I may be mistaken or it may have been changed. Splinterlands can be either F2P or P2E- but it shouldn't be both, at the same time.
Your account that fields nothing but Starter cards is F2P but is not P2E. You field 'nothing' you earn Nothing.
Your collection of Splinterlands cards was not free (whether you bought/earned/rented the cards) but is P2E- and should Earn in relation to what you Play.
The Apology: @yabapmatt/thoughts-on-the-latest-sps-governance-proposal
The Proposal: @sps.dao/sps-governance-proposal-adjust-rewards-based-on-card-level