Your exaggerated example doesn't quite fit, as I wouldn't be able to calculate the rating for two or three players :D
And regarding the fact that E will receive a lower rating than B - that is absolutely fair, because he lost to a greater number of players. But according to my version - let's assume that there are 11 players in the first tournament and 12 in the second, and B and E took 11th and 12th places respectively - B will receive 18.71, and E will receive 18.71 (if rounding to thousandths, B will have 0.005 more) :D