What confuses me regarding this thread is this a discussion of the "Mastery titles draft" event or is this simply a discussion of the community/game as a whole? This feels like two threads mixed into one, where you have some discussing one issue and the other discussing the other. I will discuss the points you have and see if I can inter-link them with the event in a cohesive way.

On point A, There is no evidence to suggest anything exists. We do have data in the sense of Fizzer saying something in the regards that 100000 players are on WarZone? I can't remember the quote but it was a figure that everyone doubted or didn't feel was true. On my perspective as a clan leader recruiter, I've felt the games game count is very much on an equilibrium, whereas many new players are coming in as old ones. We haven't noticed an exactly increase in activity on the site but at the same, there hasn't been an exactly huge decrease in players. It's on a dangerous knife-edge if suddenly a lot of players retire in any given time period.

On point B, As someone who plays both games to a reasonably high level. I think WarZone is more dynamic and fun in the sense you have different maps and settings such as local deployment and multi-attack. This makes the game on a fun level much higher but perhaps less skilful as WarZone games can very much be decided due to the luck of where your picks are at positionally and other uncontrollable factors. While chess, It's the same board, you can make the same openings with different variations and requires intense thinking and planning and there is no luck element really in Chess at least in comparison to WarZone. The only common aspect that both WarZone players and Chess players have is they have a common affair with strategy.

I don't see the "Mastery titles draft" as a game changer at the very start, it has to be an event that's well managed and it will build up reputation/status amongst the community as time goes by. It can build up to become a critical part in WarZone if developed correctly, perhaps it could be interlinked with the AWP Tour, As it's both a points measuring basis and it tests a player's strengths on the most obscure templates as you can't ignore it!

On point C, I believe the current system formats of the ladders and community events can give a reliable skill indication, however, what the titles could do is represent skill of a player without the need of having to keep "proving themselves" and won't be forgotten of their skills through the darkness of time. For example Gnuffone or any of the old Apex members. This could be a unique selling point of the event.

This isn't regulatable. Anyone can add "IM" or "GM" in front of their name already. If you want something special, see if you can arrange for some sort of icon or trophy with fizzer. That would also place more meaning in the achievement, since now players are required to achieve the status to get the trophy/icon.