I was a member of a face to face group many years ago for a short period of time. We used the read aloud method you refer to. Although it was generally helpful, it did have the pitfalls such as notetaking and author's voice getting in the way. My suggestion would be to have each member read the work for themselves ahead of the face to face meeting, then have a limited read aloud of a short excerpt. Members could then make suggestions taking into consideration the whole work as already read, but also get a different perspective from the way the author actually reads the material.
People read aloud differently and some are reluctant to do so and may be nervous which would show in the tone of the voice. That tone can effect the perception of the work and if there is a different perception of the work read aloud to the perception of having read the material first hand, then that could also be brought into the conversation. I know from my personal experience that folks often times responded to the humor more in my reading aloud than they did to the written copy (I had a couple of them read beforehand.) Some things are simply going to "sound" different when read aloud than they do on paper. There could even be a hint that some things might be suitable for an audio book -- something I've considered but not yet committed to.
I do think you might benefit from limiting the genre if enough people are available, but it shouldn't be a serious cog in the wheels if you have a mixed group as long as they are open-minded about others choices. As far as skill level, I would think different levels might actually be helpful in the long run as I've found that we oftentimes get so bogged down in our ideas of what might be "right" that we fail to see the trees for the forest so to speak. Just as children often times present us with valuable insight -- even if humorous -- by what they say or do, so might less experienced members provide valuable feedback with a different take on what is written or read.
Hope that helps. Good luck. Take care. Vern