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I agree that it should be some sort of combo of judging and pop vote, because they're both nice to have. There's Snowy's AoL method, where everything gets judged and voted on, there's Snowy's KGA method of mostly judging and then voting on one's that got multiple noms for a Voter's Choice category, there's the method of voting and then judging the top ones, or judging and then voting amongst the winners...
Personally, I'd go for a method that involves more judging than voting, because so much of the time with voting it's just scanning the list and seeing what names you recognize, and then voting for your favorite authors without reading the rest of the fics. But pop vote is good to have so there's input.
Also? If you do have judging, I'm a whore for judging, so like PM me or something if that happens.