i have done well with PS loot council, and the leadership is great, but that does not meant it isn't fundamentally flawed system. Just like a dictatorship can be benevolent and prosperous, but at high risk of corruption/damage/mutiny, the loot council system puts a huge human element into the loot distribution, wehereas DKP keeps a players fate in their own hands. i would not want to go to my job every week if my boss decided if I got goods that week or not, i would rather earn money and spend it as I see fit. whether or not the PS loot council is corrupt is really beside the point, what it does by default is add a lot of "feeling" and emotionalism into a process which should really be mechanical.
The other problem is that it creates a sort of "we are not worthy" culture from members around the leadership (probably not intended) because you really want to stroke the ego/not offend the people who decide what loot you get when you may spend 20-30 hours raiding per week. i would prefer officers were involved in leadership only, and let DKP decide loot. For exsample, we did PoG yesterday and got terrible lootz from Tunare and spent 8+ hours there, and if you did not get a drop pretty much all that time was wasted unless you worked on Officer Faction during the raid (be as talky as possible/be a useful class). it really just isn't pleasant for a end game raiding guild, even with the flaws dkp systems has.
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