The guild I'm in now does Loot Council. It works out well since we only raid 2.5 hours, so we normally just have the raid leader pick up all the gear and distribute it at raid's end(first boss loot may be distributed earlier depending on when we kill), instead of spending raid time doing loot.
LC works well when there is no bias and the council is fair and objective, which is how it is in my guild. I don't mind DKP either, but there are a lot of issues with that as well.