Okay, everyone always asks for a new LFR loot system but they never propose an idea. I have an idea for this that I wanted to hear your thoughts on.
It would be a large, large project for Blizzard but I personally think it would rock. I would propose you implement a LFR-Wide DKP system of sorts, managed on the server-side of the game.
It would work something like this .. and mind you this would ONLY be implemented in LFR. You raid, you kill 9 bosses, you receive X amount of 'dkp' for the raid. It gets saved onto the server like any other currency.
When an item drops, you place a 'bid' using the points you have accumulated from your previous LFR runs. I haven't thought yet whether this bid would be public or whether it would be private but I think you get the idea...