I came up with an idea and I think it could work quite well.
Basically, everyone is sorted into teams of three. The members of your team must all be part of LDA.
The banlist is enforced on the entire team, meaning that, between the three of you, there can be only one Dark Armed Dragon etc. This would promote slightly more varied decks. Changing cards in your deck or trading cards to your team mates is not allowed. This includes your side deck. To make sure the decks of each team meet the requirements they should be checked by an official.
A team starts off with 30000 Lifepoints. Each team decides how to distribute the lifepoints between it's members. Once your team's Lifepoints hit 0 you are out. Exodia, destiny board and similar win condition decks will be banned. The only way you can win is to reduce your opponent's lifepoints to zero.
Before a duel takes place each team decides on the order it's members will be playing in. This way there is no intentional counter picking.
So, what do you think?