I almost launched a site that was meant to compete with HN. Here was the strategy to take you over:

Note: Thanks to Incubomber.com members and Aaron Burrow for coming up with these ideas.

The specific problems that were being addressed:

1. Karma is given for link aggregation instead of content creation. Consider the user that is lucky enough to be the first to realize that you have posted a new essay on PaulGraham.com. That user will instantly post the link on Hacker News, and is guaranteed to gain a ton of karma. But aren't you more deserving of that Karma?

2. Community bias crushes the little guy. It seems that a bot is constantly running on Hacker News that matches titles against the regular expression "`YC ?[WS]?\d{2}`i" and automatically adds karma until it reaches the home page. But what makes news about a Y Combinator startup any more interesting than another startup? Some power users have a similar effect on the community. This predisposition makes it excessively difficult for unknown users to establish themselves.

3. Up votes are given where up votes are not deserved. It’s hard to blame the users, though. If someone makes a hilarious submission, it certainly deserves some recognition. Similarly, if someone reiterates a widely known fact, it still feels right to express agreement. Unfortunately the only way to communicate these feelings is by placing an up vote, which is not the proper way to place votes and detracts from the quality of the community.

The solution was Anonymerit.com (Never launched, but one of us may get to it eventually.)

Anonymerit.com
Eliminating Bias While Evaluating Credibility

What is Anonymerit?
Anonymerit is a new type of community where submissions earn merit anonymously. At the end of each month, the top submissions will be compiled and published with their author revealed (optionally). (Kudos to Hacker Monthly, we may have swiped this from you)

How does Anonymerit work?
Anonymerit is focused on content creation rather than content aggregation. All submissions and comments are the original work of their author, but Anonymerit will withhold their identity. Submissions are kept anonymous so the community can evaluate the content's credibility without introducing bias towards "noobs" or "power users," a symptom that plagues many communities as they become more established.

To evaluate a submission, users can participate in two polls with simple plus ('+') and minus ('-') options. The first poll evaluates the popularity of a submission. In general, this is used to determine if the community agrees with a post. The second poll evaluates the merit of a submission. For this poll, a '+' is used to indicate that the submission was thought provoking, informative, and insightful. A '-' is used for submissions that focus on widely known ideas, or are simply reposted content.

This separation is imperative because it allows users to quickly express their feelings at a granular level. The total scores can reveal that a submission is generally disliked but still worth reading, or that nearly everyone agrees but the content is already well-established and does not need to be reiterated.

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A monthly publication combined with anonymous postings is awesome. The publication is required because it motivates people to post their original content on HN rather than their own sites. Entrepreneurs, knowing that investors will inevitably be reading the publications, would kill to write quality content that makes it into the publication. This same fact also serves as motivation to properly vote and comment on submissions. YC already has a huge name, but imagine how much bigger it can be with a renowned publication.

The anonymous aspect is good because it lets people post anything without the fear of being stomped on by PG. In the end, you're only really looking for the best, and you can still find that through the publication. It's a win win.