First, it makes people hate each other.

That was not my experience at Google. Not all people turn to hate when learning how they are valued by others. There's certainly disappointment.

it encourages people to work on the projects that are most visible, which are not always the most valuable.

Some types of work at Google are undervalued, but it's not related to visibility.

Third, it creates a general atmosphere of distrust.

I think it creates a more pleasant atmosphere. People learn that being an asshole can hurt come review time.