There is no need to take merit away from some members in order to have more sMerit to distribute to activet forum users. Merit and sMerit are not capped, Theymos can create (if necessary ) hundred of sources or grant the actual ones thousands of smerits a month.
How about everything will work:
If you do not log in for 2 months - minus 10 Merits
If you do not write posts, within 2 months - minus 10 Merits
I don't understand what's the obsession with the merit or rank of others...
It bothers you that much that an old, now inactive account has 1000 merit?
Leave the guy alone, he earned his rank fair and square by the rules at that time.