Right, it would take a lot of work to set up--but mainy for the person who is using the seals. They'd need to farm the seals, set a date, gather 17 other level 75s, get the right jobs, organize the event, make sure that everyone shows, etc etc etc...all of which requires a LOT of time. That's far more time than someone who only needs to show up with the appropriate job. And to top it all off, if the KS99 is a bust they lose out on everyhting. They potentially put in 1000% more work than any individual person. Because of that, it wouldn't seem right to do a straight split.
For example, say an alliance gets 10mil from a KS99 run. If you do a straight split, everyone would get ~550k. However, does it seem right that someone who puts in 2 hours of work (with nothing to lose but exp) will get as much as somoene who puts in months of work? That person will not only lose exp if it's a bust, but they also lose out on all 99 seals and months of farming.
From the other end of the spectrum, if I'm helping someone out it would be nice to get compensated for the time and possible exp loss. I could be out doing other things but instead I'll be spending the next 1-2 hours helping you.
As far as the other option (selecting a couple of items and having the rest be free-lotted) I'm not so certain I'd be okay with that. Say you get drops worth 7mil, 4mil, 3mil, and then some nickel and dime items. Of course the person running the KS99 would choose the first two. If the last were free-lotted, that means one person would be getting a free 3-mil gil item and the other 16 people would get squat.
I actually thought that an 80/20 split would be equitable. That way all items would be sold and 80% would go to the person running the KS99. The rest would then be split amongst the other alliance members. If you got 10mil worth of items, each person who helped out would get ~117k for a couple hours of work and the person who ran it would get 8mil. It seems like a big discrepency, but they have the most to lose...by far.
I dunno, things with money are a touchy issue, so my opinion may be a little biased. Has anyone else here done a KS99? If so, how did it work out with the distribution?