I've reread the thread, including my own comments, and I've had more thoughts over the years, and want to add thoughts now...
I think a simulation should be able to respect both the fact that Brett is a .390 hitter and the fact that that is an outlying year. In other words, there should probably be some "credit" for the actual result even if we use an ability curve similar to what you had earlier in the thread.
But I think the important thing to bring up, that hasn't been brought up yet, is that there's another underlying assumption that simulations are making that I'm not sure is true: that batting average quality is linear. I am not at all convinced that it requires the same improvement (in real life) for a .335 hitter to become a .345 hitter as it does a .390 hitter to become a .400 hitter; in fact, I think the latter is MUCH harder, in fact, it is probably exponentially harder.
So if the complaint is "a .390 hitter can just as easily become a .450 hitter as a .330 hitter in a simulation, and that first one isn't realistic at all", well I think that's an error of the simulation. Without really any hard numbers to back it up, if we start from .390, I will sort of pull out of my *** estimate that it should be about as easy to get to .330 on the low end as it is to get to just .405 on the high end. That is, if the probability of a .330 or worse season is 10%, then even a mere .405 or better should be that same 10%, even if the "average" season is .390; I should see a lot of .391, .392 type seasons on the "high" end of the spectrum simply because it's that much harder to do.
That being said, the reason simulations don't do this is that there's not really a good way to accomplish this without building in consideration of past results, in the simulation itself, which is not something that simulations are good at doing or like doing.
The general statistical sense for an "unusual" event is a 5% tail unless you're in a field that needs a tighter definition for some reason, so I'll use that here. I would say that we should feel free to start with an ability curve, but as we do it, make sure that the actual numbers are not actually "unusual" events. Thus, Brett's 1980 season should start in simulation at no worse a number than that keeps the probability of a .390 season at at least greater than 5%. (As I said, the 5% isn't necessarily the only option for our tail, but we should figure out what we want it to be and use that for all players.) The exact place we'll need to start Brett, then, will determine on how we set the exponential curve. We might need to set it closer to .390 than you've set up here so far if we use this exponential curve.
Note that the exponential curve is not really just the bell curve. Doing that we'd just need to set it no more than 2 standard deviations away from the mean... but to even get that normal distribution we more or less need a linear dynamic, exactly what I want to get rid of here.
It's also possible, of course, that everything I said is simply too hard to implement. If we don't want to do this, than I think the previous pages cover the material pretty well.