Take into contex where these teams are playing however. India - Pakistan is always going to be held in a country where conditions suit both sides as they play to the pitches they have been brought up on.
England struggle in SL, India, Pakistan because we're not naturally good players of spin, and most pitches tear up days 3, 4 and 5 and suit spin. It's something we of course have to work on but we haven't cracked it like the Aussies.
Same can said, I'd expect Pakistan, India, Sri Lanka, any sub continental side to have a very hard time of it in New Zealand, on green seaming wickets. Not because your a team of poor players, just because it's not what your players are used to playing on. It takes time to adjust and learn. I hope you understand where I'm coming from.
I do agree it's a bit of a farce that we're still 2nd, after the year we've just had. But it's the way the ratings work sadly, because we had a fantastic 2005/06 we're still riding on the points gained from that, having beaten Australia in that period.
South Africa are up there because they hammered a side in all 3 tests they played. I'm ill informed on the rakings but I believe it's not calculated on who you beat, more of on how you beat, and you must admit South Africa won hugely. Whereas despite playing very good cricket and looking as if you'd win games, you drew twice(?) in England and Only one won game, and have done the same in the current Pakistan series.
I do agree with the points you make but the ratings are based on which results you get, rather than how well you are playing, because they're spposedly inheritant of each other, however its not how it always works as we know.
On the ratings stuff, correct me if I'm wrong on how it's based/worked out, cos as I said I do know very little, because I don't tend to take much notice because I do feel they really matter. It should be you knowing how well your teams playing rather than needing to know how they're ranked that's important.