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The main thing wrong with this is that it severely hurts guilds that try to go from CAT B to CAT A.

Especially any guild trying to move into VP (which will no where be near gear/skill as established CAT A guilds). So you punish them for 3 months by limiting them severely. Not to mention any CAT B guild has a very long way to go to be on equal terms gear/skill wise as a CAT A guild.

I'm sorry, I don't see this as a way to grow guilds at all, instead it snuffs it out. You give a major incentive to not grow as a guild though, just compete among yourselves the first week and be wary of trying to play catch up.