The info page on the WOW site is as clear as they plan on being...
1. Your rank is relative. It is a ladder system. .1% can be the top rank that is the only example that they gave, but they did say that most people will fall into the bottom couple of "grunt" ranks.
2. As for kills... it is more of an assist system. Simple example: a group kills one person the honor points for that kill is figured and distributed evenly among the party. More complex example: If a person in soloing and trying hard to kill a ganker... a party comes along and helps lay the smack down. Lets say the solo person got the 25% of the total damage... they get 25% of the total honor points, and the party of how ever many members will split the other 75% with a group bonus added in just like in PvE.
3. Even a grouped healer in the previous example that does no damage at all would get an even share of the 75% portion of the honor points.
All of this information is on the official WOW page on the honor system.