I'd like to point something important out here.
1. "Fun" ranks serve a variety of purposes and are not all fun ranks. They are called "fun ranks" because the vBulletin modification I wrote to handle them calls them fun ranks. Donation ranks are fun ranks. High-donor custom ranks are fun ranks. Some official position (IE Head MiddleMan) ranks are fun ranks.
2. There is not favoritism involved in their use. Only Sythe, myself, and Govind have permissions to give them out. I know Sythe never gives them out. I rarely ever give any out. So, if there is a favoritism issue it is best addressed with Govind. However, knowing him he does not tend to play favorites in official capacities.
3. Fun ranks are in no way a "staff perk" or "staff right." I'm just as likely to deny a staff member a fun rank as anyone else. Being a staff member does not entitle you to fun ranks. In the past, we had admins who handed them out more frequently which is why we have more restricted permission now.
4. Fun ranks are supposed to be special and rare. You aren't going to see them all the time because they are supposed to be rare. Think about fun ranks as a rare item in RuneScape. They're hard to get and (in the case of the custom donator rank) expensive.
5. Don't expect to ever get most of the fun ranks. We have something like 20-30 fun ranks in the system and most of them are never (and might never be) awarded. Some of our old ranks are specifically not to be given to anyone anymore to preserve their value and rarity. It's like a limited edition coin or something.
While I understand that people like these ranks and want to have them, my response is generally: too bad. They exist to be rare and special, and we keep them that way by restricting how many people have them.
With that said, I will offer the community this: if we come up with some appropriate reasons/ways to award fun ranks, we can certainly do so... Things like Member of the Month or other user-voted things might warrant a fun rank. As you guys already said, it would be best for something like this to be user-voted and controlled, as opposed to staff controlled. That way, we let the community make a decision and eliminate the chance for bias.