Guide events...we miss these.

Some guide events are great fun, but many are not because they pit players against each other instead of having them work toward a purpose. Note to guides: players with uber box teams have an advantage over casual players, so casual players often decline to participate in those type of events.

I'd prefer rewards compete with recent expansions and I've got a pretty high tolerance for abuse. If a guide gets caught sneaking current group gear or whatever to his buddy, it's not great but it's a small price to pay for a more engaged guide system.

There are steps in place to prevent the "sneaking current group gear or whatever to a buddy" because there is already a system in place to keep a guide from handing out ornaments to a buddy. The issue you seem to be pointing out is that they don't hand out current group gear, which you want to happen, but is not going to happen. Back in the days of the past when actual GM events, not guide events, happened, they would hand out current content stuff that was one of a kind. I think most of us would agree that would be awesome to have again, but this would require a dedicated GM or a team of GMs, along with a dev coming up with an item(s) to hand out at an event, etc. I don't think EQ will ever reach a status where this can happen again, unfortunately.

The most fun I've had at a guide event recently was an Arena PvP team event. That was a blast and I got a shield ornament for being on the 1st place team.

This is sadness.

What do the players want?
Every player wants something different and there is no way to please everyone.

Sure.

I have a pretty extreme stance on this: gives guides broad powers and tools and let them answer that question.

Hear, Hear!

I wouldn't consider that extreme, I think we all would like to see this.