Same rack in the gym I go to and your right, awful design and brutal on the bar knurling also. Hooks are too far apart - nearly six inches, so either too high or too low for just about everybody - but you still hit the one above when you un-rack the bar.
The gym has just spent a lot of money on new equipment - including adding another smith machine and a climbing frame contraption with various things hanging from it - one of which is a trampoline/bouncer thing to lob medicine balls at - it has a warning about them being returned at pace but even so there have been a few injuries already - sadly the rack was not upgraded.
I feel your pain. Yes, those hooks absolutely chewed up the bars. And yes, the hook spacing really, really sucked. My old gym also had adjustable benches (no fixed flat ones) made by the same company. Total crap. Too high, too narrow, and wobbly. I can't believe I stuck it out for a year in that gym.
Saw a guy "squatting" last night with his grip so wide that his hands were actually grasping the outside of the plates. Thought about saying something to him about this, but when I got closer, I also noticed that (1) he was doing single-legged squats; his left leg was resting on a bench behind him, and (2) he had all of 95 lb. on the bar.
Trendy exercise, sure. Legitimate? Not so much.
Got a recent story from myself:
Went to check out a new gym, all powerracks were occupied. Wandered around a bit and began warming up my squats without a rack. Rack became free, got in. First time squatting in a rack, felt like the pins were too low (in hindsight, the guy squatting before me was around as tall as I am). Set them one higher, still felt they were too low. Set them higher again. Put the bar back on the pins, and began loading plates for further warmups. Got under the bar - or tried to - as I realized the bar was like 2 inches above my shoulders when standing straight.
Looked around, saw one big dude smirking at me, began deloading the damn plates and set the pins back to where I had found them 8[