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pedestrian: There is only one problem with that formula, if a player has made 1000 games and timed out in 999, since the minimum allowed is always 1000, he would still be able to start another 1000 games. I know I haven't thought on a limit number for games, just the ratio (games timed out)/(total finished games) as opposed to the suggestions of a single timeout resulting in penalties, but considering something that has been said a few posts below. If the timeout ratio is more than 30% (this is a suggested number, and maybe it could be in the last 6 months or so) then there would be a limit of 1000 games, otherwise, there would be no limit whatsoever.
Edit:Yeah, I know I'm still allowing 1000 games, so maybe an additional class like more than 60% timeouts= a limit of 200 or 300 games. Although to be really perfect the number of finished games should also be considered for the limit calculation (if a player has timed out in 30% of 3000 games - which is 900 - against one that has lost 30% in 100, maybe the first player can play about 1500 games at once...)