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I believe you lack a fundamental understanding of the Sharpe ratio and it's application.......
While the super nit will have low variance and a low expectation, somebody who plays correctly will likely have a slightly higher variance and a much higher expectation.

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You may be right about my understanding. For example, I might've guessed that playing "correctly" would give a slightly higher expectation but a much higher variance. Usually the low-earn high-variance hands are exactly the ones that nits don't play, right? These are relative terms though, so maybe I don't understand the units in the numerator and denominator.

In any case, I think my $10,000,000,000 example clearly demonstates that the player with the higher Sharpe ratio need not be the best player.