You're right. It means that people playing regularly win more often on average against people who don't play very often, which could cause overall deflation in the pool.
Rating Deflation History?
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I know that my CFC rating is wayyyyyyyyy deflated.
Because glicko deflates over large samples, as I said.
Do you know what it is in the Glicko formula that causes this deflation ?
I would have thought if there was any deflationary element, it would the regular input of underrated chess players (regular players entering the pool at 1200 rather than their real OTB rating).
I don't. I remember it being explained in some detail, but it was a tad over my head at the time. I do know that part of the problem is that rating points are not conserved per game like they are in Elo. For instance, in Elo, PlayerOne wins x ratings points for a victory, and PlayerTwo loses x rating points. In Glicko, PlayerOne wins x rating points for a victory, and PlayerTwo loses y rating points (not necessarily x) because of the extra RD factor. I don't know if there is some condition that causes y > x more often than x > y but that is where I would look first if I were trying to figure it out.