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There is no perfect evaluation system. Even an independent observer system is imperfect because it's almost impossible to find observers that everyone can agree on. Also, most observers are friends with at least some of the officials (so they would have some bias).
I have seen several evaluation systems. They all have flaws. I feel fortunate to have never been in a system that has coach input. I know some officials who are evaluated partly by coaches and they are scared to give a technical foul for fear that the coach will rate them poorly. You should see the bench decorum (actually, the LACK of bench decorum) at those games.
Our local association has had 4 different ratings systems since I have been in the group. None of them were perfect, but all of them did manage to put the best officials near the top and the weakest officials near the bottom, IMHO.
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