It"s not just a matter of being deemed to belong in a division. Club nominations also play a part on where a team will play. I think for the most part, clubs honestly under estimate or over estimate their ability. In that case, I think teams should keep what they've earned. But, I think the rule is to discourage, for eg., a Div 1 capable team from securing a Div 1 semi final spot from Div 2 before being regraded. A team with a 6, 8 or 10 point start can be hard to pull back, especially if wash out rounds come into it. I think by dropping a team in 4th spot is saying, " If you're good enough you'll hold you're spot". Do I like the rule ? Yes & no. It's the first time I've come across it. I'll wait till the end of the season.