I think we should remove starting rating completely and have players 'ungraded' until they have played 10 games!?. From those 10 games we should calculate their performance rating and that should become their actual rating from which future rating calculations should take place.
This rating system is actually in place on another site which I play on and it works great. That way you can assess a players true potential over them (5-10) games.
As to the idea of not rating people for their first X games: how do you rate the games? If I have a rating, and I play a newbie without one, how does my rating change? The only way I can see doing it is the game is unrated for me (and if two new people play each other it's just not rated at all). What's the benefit? You don't lose points to good players without enough games for a solid rating. Points that you will get back anyway and that are minimized by the high RD of the new player. If you're that worried about it, don't play new people.
As to the idea of allowing people to "weight" the ratings by setting odds: bad idea. It will allow people to game the system, and the ratings will lose accuracy with a speed proportional to the lack of understanding about the ratings.
As to erik: I'm confused. What are you using K and p-value for? The only constants in the glicko calculation are q and c.
I agree with ExtraBold that the c value seems fine. By my calculations if a person with an RD of 50 finishes a game a week, their RD will rise maybe 3 points between games. For a person with an RD of 100 the rise would be 0.2. It would seem the only way to mess with it is modify q, but it's not immediately clear what the effect of that would be.
I'm going to look at q closer and post again later.