Beg my pardon, but that was 2 years ago. Gero isn't even deciding who is becoming a chuunin now. The system has made more clear on the matter as it is more of the Kage and looked at the effort a person put in their character. I don't get it why I read a kind of annoyed tone in your post while you admit yourself that it is silly (stupid might be too negative, don't you agree? ^^ ) to just get the rank without any work or effort placed in it.

But if you say that the case is closed and the genin is still a genin until there has been some training and missions done, then there is no harm.
Case closed, I agree!

Edit :

I forgot to say : ''Kage and the ones who organize the Chuunin Exam (who will have a fun twist this time as I, Chromehound and Fieryfly have organized it together).