My Thoughts (IMHO Only, Of Course)
Submissions
One setting per person. Pick your best one.
1000 words
* short magazine article
* plenty of space for most ideas
* won't kill judges
*
majority of WotC submissions can still fit without modification.
* 1500-2000 words more flexible, but would kill judges.
* less than 1000 words not fair to complex settings
Due Process
I prefer judges all the way. I wouldn't mind using polling to pick the judges, of course

. Also: Don't talk about your submission (or maybe Morrus can start a thread where we can, but which the judges know not to read).
Whatever process is used should end up with a 1st place setting with 40-50K words, and 9 runners up with 5-10K words. These will go into the book

.
Book
I very much like the idea of a multi-setting book. If it works out well (and if the judges aren't dead), I would love the idea of buying one of these annually. Below is my ideal book:
Possible Title: The 2002 Setting Book? (128 pages)
Title Page: 1 page
Thorough Table of Contents: 1 page
Introduction: 2 pages (Morrus, maybe Anthony or Ryan?)
Author Bios: 2 pages (1 paragraph each)
1st Place: 50 pages
9 Runners Up: 8 pages each (72 pages total)
1st place gets half of author profit; runners up split the other half evenly. Example:
1st place: 10%
9 Runners Up: 1.1% each
(Or you could do 15% and 1.65% each; or 20% and 2.2% each)
This would look real good on my shelf.
Real good.
Top 5 Advantages:
5. Individual authors can publish more thorough treatments, supplements, etc.
4. Ten Good Settings. One Big Book.
3. Cost efficient in print.
2. Author bios!
1. I repeat: This would look real good on my shelf.