I like this idea a lot. At this point in Defy's lifespan, there are lots of Veteran members. It does not seem like it means as much as it should, in my opinion. More reputable players deserve a rank higher then Veteran.
In general, I think the more ranks there are, the better. It gives members goals and a sense of accomplishment for sticking around, and I love it.
Edit: I also agree with Felix- adding more requirements for each rank rather then the biggest deal being time is a good idea. Though, as it is right now, one of the requirements is to be a good representation of the community. That makes it so not just anyone can get the ranks. Take me as an example, I meet all requirements for Veteran, however, do I deserve it? No, not yet, I just got unbanned. That requirement doesn't really mean anything for most people that can apply for Veteran, however, maybe a small extension to this would be a good idea, so that it isn't too easy to rankup.