The trouble with any award is, that there will always be people who will be disappointed and disatisfied with the winners and feel that someone else should have win it instead.
With literature, it's even more difficult, because to judge objectivelly, it wold be necessary to read
all books and then choose which one is the best. And that's not possible. Besides, there are no objective "criteria of quality". Which means it's dependent on the opinon of the people who are in the committee. So in order to make it less subjective, they have to accept some kind of "policy" what books they will consider, and based on which criteria they'll choose it. Inevitably some otherwise great authors, but that don't fit into this "policy" are ommitted.
Of course, you'd choose differently. Me, too, in some cases (though I'm afraid that if I were the judge, Joyce would still remain without prize.

)But do you really think that in that case, nobody would protest? That people wouldn't wonder how is it possible you ignored such a great author as XY, while award someone as mediocre as YX? One of the solution would be to ignore all awards. But simply won't happen. People love to evaluate, judge, criticise, compare - especially someone else's work.
So the question is - should Nobel prize (or any other) give prizes only to publicly renown authors? Only to the authors expected by majority to win? Or should they try and discover authors and works, that are not so known and popular, but nevertheless of the same (or even higher) quality? And that's importance of Nobel prize. It gives the chance to authors that would be ignored and forgotten, just because people never heard of them.
I disagree with the statement that the Nobel prize makes authors "best sellers". My experience is quite opposite - most of people would not buy it, because it won Nobel prize and they expect it will be too difficult for them to understand. Many authors on the list, especially those who did not write in English, are still rather unknown for the public.
"We few, we very happy few" - sorry, but what's that supposed to mean? Who are those "happy few"? In opposition to who? And what exactly should they be aware of?
Not that I didn't understand, I just
hope I understood it
wrong.