I basically agree with what James has said. I think any honest astrologer has to accept that house systems are amongst the most contentious area within the whole art of astrology. So I think we need to tread more carefully here than just about anywhere else in making definitive or dogmatic statements. In my opinion all house systems pose problems. Its just a question of what particular ''problem'' concerns you the most.
What makes sense to one astrologer may look totally implausible to another. Very often the attitude is quite subjective ie this house system doesn't fit my chart! Even the most distinguished astrologers can be influencced by such an approach. For example read this piece on Morin where he attacks the equal house system used by Cardano because he didn't feel equal houses fitted his life experience:
http://www.skyscript.co.uk/morinchart.html
The most relevant section is as follows:
In Astrologia Gallica, Morin erects his natal chart first utilizing the Regiomontanus house system and then using the equal house system to demonstrate the absolute falsehood of the latter procedure. Under the equal house system, the stellium in question falls in his 11th [equal] house and thus the discontents, griefs, and artful manipulations that he was destined to suffer would have been transformed into personal satisfactions arising from his profession, friendships, powerful protectors, happiness and well-being for his parents, and riches for the native; but all of this was resoundingly disproved by the facts of his life.
Interestingly, whole sign would have agreed with the 12th house signification of most the relevant planets in Morin's chart using Regiomontanus houses in contrast to Equal.
Looking at things more philosophically one can find a certain approach attractive and another unappealing. Some like the symmetry of an equal or whole sign system. Others argue nature is not strictly symmmetrical and therefore quadrant systems like Placidus, Alcabitius or Koch better reflect the natural unequal ascensional rising times of signs. Many astrologers are also familiar with the Midheaven point as the 10th house cusp and feel other approaches like equal, or whole sign are more artificial by leaving the MC free floating in the chart.
Advocates of whole sign or equal might counter that the ascensional rising times of signs is not necessarily relevant to determining houses. For example, the Sun takes approximately 30 days to transit a sign and the zodiac signs approximate this.
From that more solar/sign orientated approach to houses things like intercepted houses make no sense as a useful astrological approach.
I personally, moved away from all quadrant houses some years ago because I live in a fairly high latitude location and I found the massively shrunken or expanded houses I was regularly seeing unhelpful in practical delineation terms. However, if you dont live in a high latitude locations you might only encounter this issue infrequently so it might not assume much importance for you. Equally, there are undeniably lots of astrologers have no personal problem with the effects of latitude on quadrant houses. For example, the Norwegian astrologer Andrew Bevan happily works with Regiomontanus houses in all his charts. So I guess its Vive la diff?rence!
I understand your criticism of whole sign based on early/late rising degrees. But it gets to the heart of what a house is really for doesn't it?
If equal houses makes more sense to you than go with it. I do find it useful to combine equal cusps with whole sign houses myself. A planet may be in the whole sign 7th but its signification will be different if it has fallen below the horizon. A planet near those equal cusps (or MC/IC axis) will be more powerful in my view.
But another personal issue I have is that I have seen several instances where a planet above the 1st house cusp doesn't operate like its in the 12th and is quite prominent. Neither equal or any of the conventional quadrant systems seem able to explain that phenomena to my satisfaction. But maybe thats just me. Its doesn't seem to bother most of the astrological community.
Anyway, that is my experience and why I work with whole sign houses. I am not trying to convert you to my approach. We all need to follow an approach that makes sense to us. As we all all different and work from contrasting preconceptions and experiences we are likely to go off in different directions in our approach to house systems.
Mark