Hmmm, actually it's sort of a combination between Einherjar (Ampuoles / Legion Points) and the Walk of Echos (Drops based on Participation / kills). It could be the best of both worlds. Should be some shared, some exclusive items to each reward type and that should be enough to keep people interested for a long time. As long as there are plenty of good to great items available via Legion points, and great to outstanding items via drops (would even include upgrade items in the drop / points pool, So that those who are looking for the upgrade items have another way to obtain them.) and we could have ourselves a winner.

Manicora the problem with what you're suggesting is that you are always going to have a group who a) Does an awesome job kills HNMs and what not and is unfortunate and doesn't get what they want. or b) Does a mediocre job and gets everything they want. If they handle the kill drops in a treasure pool like Dynamis, then that's good with me. Like I said above, with the Points / Performance system, everyone has a chance to get something they want and a goal to work towards.