One other poster mentioned this but there is an addon allowing the best of both worlds to take the human element out of the equation while meeting the strength of strategic placement of loot by a loot council.
EPGP, being similar to dkp but far superior by have two ways of measuring item eligibility. With an addon as EPGPLOOTMASTER, where raid members can turn on incoming monitoring and allow everyone or a few to see who are interested in an item. The addon also compares to what is currently equiped to see who needs the item the most allowing a loot council type of distribution. In case of ties you have the EPGP system to determine who has the better raid attendance/effort, etc. while seeing who and how often someone has received loot.
My guild has used this system for almost 2 years now and it has not only worked well but is completely irreplaceable. The reason is that it tracks Effort(raid attendance,etc.),EP and recent items received, GP scaled by an addon. Essentially, informing the lootmaster or Council who has put in the most effort and how much gear they have received recently. As mentioned by utilizing EPGPLOOTMASTER addon the council can make an informed decision to who is best served by receiving a specific item.
Our experience has been that with a tight knit guild as we are, the decision of loot distribution is not solely the responsibility of the raid leader but also the responsibility of the most eligible to determine who should be awarded the item. Example, Highest PR person(as determined by EPGP) looks at the items that other candidates have and defer to pass it to the person who needs it the most, benefiting the raid/guild as a whole.
It is often the case that the Council or LM is unqualified to determine which person would benefit most from the dropped item.
As mentioned also, the only failure is the systems inability work with pugs but a preliminary free roll can give the pug an equal opportunity.
With the development of such addons, both elements can co-exist and systems solely placing the responsibility of loot distribution in the hands of a loot council or dkp-types systems are things of the past.