I will say the same thing now that I said when this subject was "officially" beat to death last year. I don't want a "grading" system like in the book. I DO want a clear specific language with clearly defined terms to communicate relative condition. I proposed then what you are proposing now, and no one could get past their fear and loathing of grading systems. I would like one more category between EXCELLENT and USED:

VERY GOOD -- a chip which shows apparent signs of use, but extremely small amount of damage.

A club sanctioned set of terminology does not a grading system make. Most areas of specialization have terms that those involved in the specialization can use for clear specific communication. Newbies and shysters will always misuse terms, but that's no reason to not embrace them.