I understand where you are coming from here, and yes I understand that SK is not always the most fair system for guild raids, I did mention that this was being used for a standing PUG, where the members in the raid consistently change week-to-week.

In these kind of situations, I believe that SK can be one of the more fair systems. For instance, let's say that you have been raiding for a long time already, but your core group leaves the server, so, you join a standing PUG. Your gear is at a much higher level than the others, so you don't bid on any items for months at a time, and possibly go in spurts without raiding with them because you are getting no benefit. When the time comes that the PUG catches up with you, gear-wise, you begin raiding with them again, and come across an item that you want. Here you would likely be at the top of the list, and actually get an upgrade, when everyone else has been upgrading consistently while you got nothing.

This has been the case with myself, so I do see it as a fair system, for a PUG that is.

Now, if my guild ever gets around to actually raiding on a week-to-week basis, would I use this system? Probably not, because you have the same players over, and over again, but it does work well in PUG situations.

As a side note, my personal favorite loot distribution system is the one that is built into the game, combined with my guild's agreement on rolling. Need for Main spec, Greed for Off Spec, pass if it is neither. If something is not looted, it is fair game for disenchanting, and the shards are rolled on at the end of the instance.