Tough issue, (I actually woke up in the night thinking about it) but I am finally leaning towards the system as it is, statistics notwithstanding (and believe me, it pains me to say that) . Here is why:
First, and foremost, I'd say that the optional and situation limited nature of the rule AND the fact that most skill rolls are (or should be) binary anyway (quantification is irrelevant) means that for non combat resolution , it doesn't effect play or degree of success or failure much at all, ever.
As regard skill resolution:
1. The T/E choices will only be needed where time is crucial, or quality iscrucial: when one dominates the other, it makes sense that the character will either fail, or succeed accordingly - ie generally with better time OR better quality of effort. While you will NEVER succeed with a 1, you will still succeed or fail: a low/high or high/high roll will be the players goal; if the latter, all is good; if the former one is sacrificed for the other.
2. The fact that that sacrifice is less likely to be a massive failure is noted....but.....the game is about doing things so I don't have a big problem with that bias....; and the fail results (less than eight ) will also reflect the choice of time or effect, which seems to be being overlooked here.
3. It strikes me that the analysis needs to consider the distribution of failures, , the situation when a T/E read will be called for AND the nature of most resolutions.a 5/2 will still have the effect of the 5 being the desired effect or time, if only to allow a reroll. The fact that the fail results mirror the success rolls, (ie the 1's pile up) is simply what you get when performing under stress in cinematic conditions...great success or great failure. (although, I'd be prepared to argue that the actual observation of motivational effects do show this pattern -).
4. Really, part of the problem seems to be the words used in the quantification, and the desire for symmetry in the results. If they were simply"adequate, acceptable, good", I'd have a lot less trouble arguing that at most tasks one tries (at a reasonable level of challenge - ie appropriate to your training, a skill level ~= the difficulty) the high end for MOST results is reasonable. 50% near failures is
not a reasonable description of most competently attempted tasks, ask your supervisor/advisor/boss/spouse
5. Finally, really, the key is to not assume that this is necessary OR needed for many rolls at all - only those where there is a significant trade off issue - ie great stress.
I have no problem with the skewed results in combat.
1. Both sides get it, so there the skew is equal (player and GM characters get it, NOT just the players);
2.it can be posited that the low effect/timing results represent non-crucial or irrelevant successes ("Ow ! creased my helmet !"). Ignoring 1HP scratches is a great feature of the system, esp if you've ever played one of the classic eighties multi table shooter RPGs.
3. The initiative/choice effect in combat is very important, and will similarly balance the results, as a failure still has consequences that must be chosen from. Even a miss need not be a disaster if ones timing is not badly reset.
4. Higher effect and init results make combat nastier (My preference) and keep it moving along.
Cap