that's a fair opinion to have, but there are quite a lot of people who play rapid above 1600 including myself. I'm fairly certain all online ratings are inflated compared to OTB, but as far as I'm aware there is no major difference between time controls.
Blitz ratings are less inflated and more accurate compared to classical otb (real chess strength) than rapid for people above 800 rapid.
Do you have a source for this?
Your right 1700 chess is goofy but they aren't bad! Once you figure out how to play positionally In the opening you will be around 2000(make 2000 hang pieces in 15 or less moves).you will understand what I mean when you get there don't focus on openings but get really good at punishing your opponent mistakes/forcing mistakes on them basically get good with tempi =2000+