I see there being two trains of thought here. 

1. The Win/Loss for Characters, and then that characters standing.

2. How well you write as a player, and awarded points for that. Therefore, there is a ranking system. 

Personally, I don't care if I win or loose as long as the writing is good and both people have fun. So, while some are more concerned about their characters prowess and that record, others like myself care more about writing quality.

That's not to say that they are mutually exclusive. The best writers could very well have the best win/lost ratio. But, this way people could bring less than optimal combat characters and still get award points (or something) for their writing skill. 

Then you could simply go back to having the three tiers of characters that were mentioned earlier; Normal, Enhanced and Powered I believe. Then have a different set of criteria for writing, which could be decided on later. Maybe even have peers grade eachother, someone not fighting? Not sure on that one.