Would you agree that the penalty is exactly the same if you have 20 seconds on the clock, whether the game is Standard, Rapid or Blitz? That is not silly at all in my opinion. You say that in a Standard game (presumably also with increment) the penalty is far more severe than in a Blitz game with increment. Why? It sounds to me as the millionaire that is complaining about losing millions in tax, because he pays 50%, while the beggar on the street corner only pays a few dollars (also 50%). I don't see anything wrong with that. If you are saying that you don't pay any penalty if your remaining time is near zero, while you won't pay anything for the new moves you make (and the increments you gain) well that is true, but that is the effect of being a penalty on time savings, not a penalty on future periods or future increments.
The silly thing is what was the law for some time between 2001 and 2014, so that in a Standard or Rapid game you would not lose a single second, but your opponent would get two minutes, while in Blitz the most severe penalty was used: the loss of the game. In my opinion a clear injustice to Blitz under the disguise that it was not manageable otherwise. Then in 2017 Rapid and Blitz was made identical as illegal move was also made an instant loss in Rapid. It seems to me that this whole exercise in trying to make the penalties compatible by defining Rapid as identical to Standard, then identical to Blitz, has not really obtained a penalty that is logical and severe and compatible between the modes of play. From January 1, 2018 we will have the same penalty for all 3 modes, with 2 minutes added to the opponent for Standard and Rapid, and 1 minutes added for Blitz, for the first illegal move, and a loss declared for the next illegal move. However in all 3 modes the penalty is really not a penalty, but a compensation for the opponent. Especially in Blitz a 1-minute addition to the clock instead of reduction of time will lead to scheduling problems.
I'm not following your argument here. If you have 1 second on the clock, after the reduction to 0.5 second, the result is always rounded up to nearest second, so the penalty is nil - that means in no case the penalty will lead to a direct time loss. This is independent of if the increment is 2 seonds or 10 seconds or 30 seconds. The penalty is just like a 50% tax, it is used both for all the fixed time you have been added (for instance in different periods), and also to each move that was added with the increment time.
I agree. It seems several of the last changes to Rules have been without a thorough debate on the floor between arbiters. They should be heard.