Since we're having a thread for opinions about a contest based on opinions, here's mine.
I think the fun for the voters is not only choosing a winner, but voicing what they like and why. I'd like to see the nomination process pick up on this. Much of the fun from Tom's last lottery was not only the chance to have a unit made for you, but seeing the crazy things that others will think up.
Once the categories are established, a thread could be opened similar to the Monthly Submissions or Unit Lottery threads. The first post lists the categories and format for posts. Every member gets one post and puts his choices, whether the categories are units, graphics, or special categories like people have been mentioning. E.g.
Best Industrial Era Unit: Choice 1, choice 2, choice 3
Best Leaderhead: Choice 1, choice 2, choice 3
Best Expanded Editor With More Than Four Eras: Choice 1, choice 2, choice 3
Comments: ...
The thread would be open a set amount of time, and people could feel free to edit their post with changes, counter-comments, or what-have-ya during that time. Any knucklehead double posting or otherwise not following the procedure would be mercilessly humiliated by his fellow members. At the end, the top X amount of nominations would be combined into a poll, and then people could vote on the polls for each category. The nomination process could be open 2-4 weeks, and the voting for 2 weeks or so. If someone volunteers to make new awards, more power to them.
I think it would be great to see more people participate in this. A front page announcement for the contest would be the bomb. I'd like to see guests sign-up and people from other parts of the site stop by to join in. This is a great chance for our creators who have been here for years to showcase their work to a wider audience.
In short, it'd be cool to see a nomination process that's a public spectacle filled with mirth.