I liked the idea of a need roll determining if an item goes to the guild or a member of the PUG side.  And once that roll determines whether or not the item goes to the guild I like the idea of bidding via normal DKP style on the guild side.  If I were PUGging along I'd find that system, as long as it was explained to me, to be more than fair to all and I'd be inclined to put in an app if I were looking to be guilded.

The system is fair to all and still allows us guildies to earn/use DKP which I think is a plus for reasons specified above.  I thought it worked out great and the bidding process really isn't that big of an ordeal.  It's kinda fun, actually.