Some sort of loot council.
Personally I think it's still important to reward players to keep them motivated. For example, imagine leveling and gearing up for raids in Cataclysm. Someone in the guild hits server first level 80 and grinds dungeons for his gear, yet gets no loot as he has chosen to grind heroics 20 hours per day. There'd then be a few slackers hoarding up essentially all the loot because they would otherwise be in greens. Will it motivate or reward the more hardcore player? Probably not.
Some sort of balance I feel is ideal where you take into account as many aspects of loot distribution and player happiness as possible. I think we succeeded very well in that in our last guild.
