Arguably though the Academy Awards also suffer from what the Puppies accuse the Hugos of being: rewarding unenjoyable pandering (just of a different variety). I'm a huge film nerd who will enjoy watching abstract art films and I can barely stand sitting through a lot of the Academy Award nominations. There's no good solution. If you hand over awards to critics you often end up with dry "important" works of art. If you hand it over to the consumers you get McDonalds works of art. If you hand it over to the creators you get a lot of self indulgent crap. And without fail the winners are pretty arbitrary especially since it's on an annual basis. If you happen to have a lot of crap in one year, above average crap will win. If you have a year of amazing groundbreaking work then every nomination could be better than the last decade of winners.
It's tough to find any one process which nominates work that is: Important, Innovative and Entertaining.