Dude, you're wrong. Check your "tude" and realize you don't know everything.

Pilot stated altitudes DO trump altitude encoders.

ATC does ask pilots to report through altitudes even when they have the altitude encoder. Mostly when there is close crossing traffic they need to maintain separation. The pilot reported altitude serves two purposes; First if the pilot reports through the altitude then there is no conflict even if the xponder is lagging a bit (and they do). Second it serves as a reminder to the controller working the conflict.

Don't come off the top rope on me. Especially when you clearly don't know the difference between pig sh!t and apple butter.