I don't see why everyone is so adverse against dice rolls. Hearthstone, for example, is a game that's heavily reliant on RNG as well as many Rouge-like/lite games that are out there.
That's fine for things that intended to be that way. If the new Call of Duty that came out this year was suddenly a dice-roller where every combat interaction depended on your roll vs the enemy, do you think anyone would play it? You've just taken all the skill out of the game and made it entirely luck-based. That's not to say luck doesn't already exist in the game; being in the right place at the right time, your enemy hitting the wrong button, lag, etc, but taking the skill out and making it a dice game isn't the solution for CoD's down year last year, and it's not the solution for RP here.
Chinote - Having a system based around 'who is the better writer' isn't really a system because it falls under subjectivity. Basically, the reader determines the winner in that case based off of some feeling on what they like and what they don't like. Your system may have come from another game where people may limit their characters more, but in SL those kinds of things don't really exist. A character with more tricks to use will, 9 times out of 10, beat a character with less.
No, it doesn't. Because if you're a better writer than your opponent, it's not going to come down to a judge's decision. If you're a better writer, then you'll find a way to win. If you don't, then it should be obvious who controlled the fight. In a world where not everyone has to be Madara on crack to survive, it leaves the door open to more creativity. You're not going to have the same one, two or three cookie-cutter characters used by everyone and causing infinite stalemates. You're going to have a more diverse world where rather than rock vs rock every single battle, you'll get paper. You'll get scissors. You'll get lizard and Spock. Hell, you might even get a gun, a nut, and a squirrel. There will be obvious advantages and disadvantages in most fights. But even if you're a paper fighting scissors, you can win if you're better at writing. It's not impossible. It's not unheard of. It's not easy, but being a better writer, a better RPer, should always be the tilt. Not a lucky die.