Battle rhythym and combat attunement are both incremental based on combat ticks. It is slow to ramp up, similar to poison although not quite as slow, and then it ramps down while out of combat. In essence, it is extremely similar to what you've suggested except it is built directly into hitroll/damroll modifiers instead of as a side-effect that boosts them. This is because they are % based bonuses to your current hitroll/damroll, and it was simply an easier implementation this way.
In regards to the PS, we don't need to worry about those kinds of issues.

If we legitimately have a need for 1000 affect flags, then we can use 1000.