This system is perfectly fine, I always tell players that if they are good and deserve to get higher they will get higher. Now, I have played some ranked games and I am placed myself.
I ended up in G1. I thought that I will start somewhere between bronze 1 to silver 3. But I got placed in silver 1 because of my high MMR last season. took me 8 games to get to gold again. I get like 28-30 LP per win and I am yet to see how much I lose, but if I had to guess it will be something like 13-15 LP loss, judging from last season experience.
No, I am not saying this because I want to show up, really. What I mean by this is that, this system helps you get higher, you even get one free win if you fail to win promos and if you play well enought to get higher, you sure will get higher, just don't give up when you see your first rank. We all started here, trust me, hell I wasn't even bronze in season1 because you could end up even lower! So don't worry, just play and have fun and you will climb, trust me. Good luck!