I should point out that just because ISO is closed and dysfunctional doesn't mean other standards bodies are. The W3C and IETF are two examples of standards bodies that publish all their standards on the web royalty-free, and where all or almost all discussion and development of the specs is open. There are some large web specs these days (HTML5, DOM4, my editing spec) that are developed exactly like open-source projects: liberal licenses, public version control and bug trackers, discussion on IRC and mailing lists, etc.
Standardization doesn't have to involve paperwork either. HTML5 was originally developed (and to a large extent still is) at the WHATWG, which is just Ian Hickson's personal Dreamhost site. The procedures consist of e-mailing the mailing list or filing a bug if you have feedback, and Ian will address it eventually as he sees fit. The HTML Editing APIs specification that I'm currently working on is developed the same way.
All you really need for standardization is someone willing to put in the time and effort working with implementers, and implementers who are willing to compromise where necessary to match the standard. You can really host the specification wherever you want, and develop it however you want, provided you have the implementers on board.