I really like the idea of a flash-fiction model, as lomedet stated above. Some sort of prompt-based system that helps to generate new work as well as providing a place for older work to be advertised, maybe? That seems like it would be the best of both worlds to me. The only other thing I can think of is having some sort of rec day -- I'm thinking of how crack_van sets aside a specific day to do vid recs -- where people can rec their favourite queer gen works. Possibly theme-based?

Otherwise, I like the idea of kicking off with a fest. For me, it's good way to get excitement level up and actually have an excuse to dive into a new project. I'd prefer some structure to it, like picking up prompts or themes, just so there's some sort of idea-generation happening. Maybe there could be some sort of writer-artist match up to help generate more than just fic?