It's irritating. They need to make harsher penalties for this kind of stuff.
Hmmm regarding USFII I'm not sure if this would result in less rage quitting. If you are forced to play three times against the same person and you've already lost match 1, you might be salty enough to not even try fighting anymore in matches 2 and 3. This would suck for both players, I guess.
Gameplay > Graphics
Substance > Style
Art Direction > Realism