Let me take the counterpoint: If peer review was a rubber stamping process then most journals or conference would publish most papers. Just take the journals and conferences I mentioned earlier and you'll see that their rejection stats are above 60-70% if not more.

With regard to the paper you mentioned http://jrsm.rsmjournals.com/content/99/4/178.full

You need to go beyond the title of the paper. Please read the whole paper you are referencing and then please tell me how the following extract is running opposite to what I mentioned earlier:

" Opening up peer review ...The final step was, in my mind, to open up the whole process and conduct it in real time on the web in front of the eyes of anybody interested. Peer review would then be transformed from a black box into an open scientific discourse. Often I found the discourse around a study was a lot more interesting than the study itself. Now that I have left I am not sure if this system will be introduced...."

The simple fact is you understand peer review to mean how it is currently employed i.e. one time process used in the pre-publication stage (you do the review before the paper is published). That type of peer review is flawed as some bad papers still go through the process. What is proposed is having an on-going peer review so that over time, only the stronger papers stand. It really is not difficult to understand.