There's a huge difference between something being rated poor and unrated. So just because something is new, does that mean it is worse than poor? No. It means that nobody has taken the time (or had the time) to rate it yet. There is the chance that it could be poor, but that doesn't immediately make it poor. It could also be excellent...
I think the best solution is just to show how many votes a thread/modification has, and either show the number, or combine them into a score.
These rating systems only work if the people using them understand how everything works... and it seems they don't.
Anyway, back to the topic: hopefully the promised hack database will have more than one field for ratings (stability, features, efficiency, etc). I don't really think this is a problem with modifications being labelled, but just a problem with the rating system in general: it is not clear. I think it should be clarified what they are rating - the thread or the modification. Someone with good intentions could rate it 1, because of some spam or goofing off in the thread of a great modification.
I personally don't think it's a big deal, but that's probably because I don't release hacks here. I would really like to see how many people rated it right beside the stars (everywhere they are shown).
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