So a team that plays better, help me here, is rated better, and that is shocking? Current results are always going to be the most relevant, and the age of the results in the history affects its value towards the rating at a pretty significant velocity. Anything older than 6 months really doesn't seem to move the needle much at all. And if a team is progressively improving at a significant rate, i.e. much more than the average one would expect as they age - yes - if they become a *new* team every 6 months, the rating of that new team (once it has sufficient games), would be expected to be somewhat better than if that team kept the prior 6 months history where they were performing noticeably worse.
But keep in mind - all of this is to predict whether that specific team, at this very point in time, would be expected to beat another specific team, at this very point in time. Only one prediction is the "right" one, what is the expected strength of the team right now. Yes - if they have overperformed in the last few games, and they can wipe the old history and still have enough to show as ranked, it might be a higher rating than if they included all of their game history. But overall - the more game history (up to a point) assigned to a team, the more likely the prediction of the team's strength to be accurate.