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Besides some ephemeral fame, the only thing Raiders competing for World/Server firsts are vying for is to see who'll start getting bored with content soonest. Then the competition is who can whine the loudest about the lack of new raids while implying that something tragic will happen to the game if they don't get what they want as soon as they want it.
If you want the raiding game to be more competitive, the best thing to do is stagger the release of instances. BC was not good for competition because almost everything was released before the vast majority of the raiding population was ready for it. There can be some argument over whether 2.0 was cockblock or if the 2.1/2.4 nerfs are the true intended difficulty levels. Between the struggle for attunements, tank burn out, raid turnover due to dealing with perceived cockblockedness, and so on, Burning Crusade was probably more brutal than it needed to be. It was just one long unrelenting grind from keying for Karazhan to getting Illidan down, no breathers, no recuperation. The guilds that got ahead stayed ahead, and the competition pretty much stopped for most guilds halfway through.
I'm not saying anything new, the above paragraph has been a dead horse for almost a year. So, in short, bring back the staggered release schedule of raids in 1.0 and we'll probably see much more engaging footraces at each patch interval.
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