I like DKP Silent Auction the best personally. Though thats obviously for guilds rather than pug groups.
The one unbiased system available.
We use a list system in our guild.
We used it back in Vanilla and it worked perfectly.
Players make their own lists 1-8 or what ever, with 1 being their highest demand.
Item drops, officers check lists, member with item highest on list gets item.
Some attendance does take effect, can drop an item down a spot if your attendance sucks. Or using attendance as a tie breaker.
Members are more or less in full control of their gear this way.
Then just join the guild! 
Thatās rng and fairness of /roll however. Plus with a group of adults itās possible that the person winning so much could just pass at a certain point.
The purpose of picking of pugs is to also help recruit as well. Putting them near equal to guildees defeats that incentive to some degree. Plus you obviously want to gear up guildees first. Would you join one where you /roll 70 unbuffed and /85 buffed?
Not everyone picks up pugs to recruit. Not all pugs are looking to recruit. Maybe if the community had those that are looking for guild but currently guildless classified as something like free agents, then I can see the pug rolls (now free agent rolls) working better.
Maybe the person is pugging due to RL events interfering with their guilds normal raid time?
DKP is stupid. Maybe once you get a raid into farm modeā¦ But even then.
I always preferred need before greed master looting. The health of the raid is very important. Loot should be spread about evenly and fairly in ways that helps the whole.
A big part of Vanilla raiding is understanding that the raid is greater than the sum of its parts. If you work to susntain a healthy raid, you will get loot. Itās just a matter of time.
You are wrong.
A healthy raid guild needs more than 40 people, because not all 40 people will be available every day, and you need to change composition sometimes.
The regular loot system only gives loot to people in raid, and leaves out the 20 people on the bench.
With DKP/loot council you can reward bench people, so when they DO get in the raid they will gear up faster because they collected dkpā¦
This right here.
Way back in olden days of yore when I was raiding, the guild I was in used DKP with certain modifiers attached.
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While I canāt remember the amounts, everyone on the raid team was given X amount of points per raid week
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Bonus points were awarded (minor, but points is points) for being on time, having potions/bandages/etc.
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Pug attendees were also given points, but less than full guild members, and no bonus points. This would still allow them to bid on/win items.
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In order to spread the wealth, if TANK/HEALER/DPS 1 won an item from the 1st boss, and another TANK/HEALER/DPS item dropped from the 2nd boss, Player 1 could not bid on item 2 unless all other main spec members passed on it.
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To prevent hoarding of points, all points were reset to 0 after 1 month.
Anyway, these loot rules worked pretty well for us. Everyone just had to accept that you would eventually be geared.
You win as a team and you lose as a team. Hopefully more people will come to understand this as this is a concept thatās been eradicated in retail.
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DKP may be the worst system in the history of WoW.