Thanks Yinx for sharing your concerns about the loot system. It would be nice to see more mythic raiders be open with their opinions, so please add your thoughts to this thread.
First i'd like to explain why i find loot distribution is a big pain. I've (and i don't doubt you have too) tried many loot systems. Nowhere are people happy with the system. There are always someone unhappy about why they didn't get loot. It is very normal for a player to want something directly rewarding (such as receiving loot or killing a boss they havent killed before) every raid. If you don't get anything you will feel down and start to see wrongs in why other people got something when you didn't. This is why changing loot system doesn't doo much for the loot distribution in itself. You have to look at other benefits of using the system.
We need to compare benefits with systems and see which would be most beneficial towards to big goal (mythic progress). I ask everyone here to think what a loot system does good AND bad, and post your results in here.
With your Loot Council system, as you explained it, i can see the benefits of items going to the correct classes. I can also see the benefits of the total dps/hps/whatever increasing for the good of the group as an entity.
And negatives; this text will be longer because i want to explain them, since you already explained the positives in your post. Negatives that i see are people who are geared early will then come carry other people who don't have any gear because they have better items. When you describe your system it feels like you think of it as a utopia where 20 players are raiding every raid and noone ever quits or gets sick or have to cancel the raid. In reality people quit and we need to bring in new players to take their spots. How fun would this be? I could imagine not very fun, since you would most likely feel just as much angry about "carrying" someone on their first mythic raid and giving him the WF+socket item (that would also be quite an upgrade for yourself), because you cannot know he will keep raiding mythic. Another problem i see is that the regular raiders will favor eachother when it comes to "counceling" loot, this problem alone would already make it a broken system. I am also sure people will have opinions why they did not receive the item and be very upset about this, which sucks to have during raids. This would especially be true if the person felt like he is systematically frozen out from getting loot.
Before i give my subjective opinions about our current DKP system i need to do some history. We've been doing guild raids with this guild every week (with extremely few exceptions) for over a year now. The biggest problem has been attendance. We have tried punishing not showing up for raids, this doesn't work well. Players do not get paid to come to raids nor do they have any contract. If someone chooses they don't wanna raid tonight then they just don't have any reason to show up. Other players who actually DO show up are affected by this, since raid will be crap with less core raiders available for the evening. So we thought we wanted to try rewarding rather than punishing. DKP came to mind, we could reward points as attendance. We discussed it for many, many weeks. Now we also thought this would solve another big problem, people who attend raids will get more loot than people who dont attend raids as regularly.
To evaluate the DKP system so far i can think of some pros and cons. Good things first. People actually do need to raid regularly to have any chance on gear, after all little points => little gear. Now this is not entirely true because there are different ways to spend points. You can either get an item you want early before someone else, by spending points, and not getting very many items in the start, or you can save some dkp in the early tier and get more items a little bit later in when those who spend early are down on points, or you can bottom feed and take items for 5dkp when everyone else who need them already got them. Rewarding attendance seem to work, this is the only system that actually make people come help out on the previous difficulty level. It is easy to say that you'd like to help but when it comes down to it very few will show up if they don't get anything for it (yes, we learned this the hard way). Without getting new players into the raid team we'll end up having to recruit already "good" raiders from other guilds or from disbanded guilds. The former are usually worthless since they are guild hoppers and 99% have a very bad attitudes or don't care about anything serious. I'd like to think that everyone have been in guilds before and seen this already how stupid that is. Those who come from disbanded guilds might be very good people and good raiders, but the problem here is that guilds disband during certain moments in the wow cycle, so the supply is not very good and very much irregular. This means we cannot rely on this and thus we have to "carry" people into the team, for our own benefits.
And there are for sure several things i do not like with DKP. First off it takes alot of time to do the loot, just like loot council would, even more time if we have arguments (goes for both systems). To minimize frustration doing the loot we need to have some rules and avoid having some rules. For example, if we would forbid "baiting" it would be hard to detect and validate if it was infact a bait. This would create long discussions and alot of frustration so therefore we simply allow "baiting". Not much to discuss. BUT baiting is still a bad thing with DKP. People earned their points by spending time from their life, so why waste peoples dkp for fun? STUPID! Another big thing is what yinx already explained is that people bid for minor upgrades that could go to someone else where the item would benefit the whole group more. This is also very hard and i have no solution for it. If we were to discuss every item we would spend our raid nights on 60% loot discussion and 40% raiding. Other things i dislike with dkp is the overhead of tracking the dkp. It would be way faster if we did personal loot always ;)
So to summarize: Loot council may work (will have to try and evaluate) IF we have a fixed 20 man group of raiders who attend every raid night. If players quit we're fucked if we don't always keep investing in our might-eventually-be raiders.
Please do follow up with more pros and cons for each system, or suggest another system where you account for the previously stated pros and cons. This goes for everyone who are unhappy with the current loot system.