Seriously, VW loot system..come on.

[Kristal]

First a mild correction, there's a hierarchy to items, Rare/Ex items don't get forced out of the pool. But there would be a similar issue with junk getting forced into peoples' inventories and items getting lost from getting forcibly filled. Luckily though, you'd still have 5 min to pass/drop junk before it's lost.

Rare/ex items do and will get pushed out of the pool, but only by similar items. Mundane items like logs will not, but they will still clog player inventories preventing you from lotting. If there are more then 10 ex items, the first one is auto-dropped. Many such items have been lost to the quirks of the pool already, and they will do so in the future.
Voidwatch would make that situation even more likely with a potential 60 items dropping at the same time.

Also I think there's a mild inaccuracy in the logic. You see, the 1% drop rate items are coveted right? So at least for a pickup group, the desired item would be sought after by people going to the run. In essence, the 1% drop rate remains, and is only altered in the event one person gets the item multiple times in a row. If it was a linkshell run I could see your math being relevant, but ironically, it's in favor of the spirit of the game isn't it? Working as a group to improve your odds?

The only inaccuracy is that the droprate is actually slightly higher, due to the chance of multiple 1% items dropping.
If your example was the norm, noone would object to the current system since anyone that has the desired items wouldn't bother going to fight the NM. And just because an item might drop to someone that actually wants it, doesn't do away with the fact that it's still dropping. It might also have dropped to someone else, which means anyone wanting the item gets the droprate of the group of people not wanting the drop. Some people might just be joining for the heavy metal.