This already happens all the time in World of Warcraft, and it didn't cause a problem because others would come in as replacements. In general, each player will want to take a whack at each boss for the loot, so those who drop at Boss2 will mean he was a replacement at Boss3 in a previous run, overall you will still have the same number of players participating.
Towards the end of the content patch when most people have only the one or two pieces they still desperately need, you will have people ignoring later bosses, but that will happen regardless of how the loot is locked out. When they find no meaning in doing something, they will simply not do it.
So in the end, this loot lockout system will not cause parties to fall apart, in fact, it helps with parties that do fall apart to quickly find replacements because people are entirely willing to join in-progress Crystal Tower parties. On the other hand, nobody wants to join in-progress Binding Coil parties because they would miss out on the loot from earlier parties (unless they no longer need anything from it, of course).
The fact that each full party in CT gets their own loot, however, means that it is possible to sell CT runs with a premade. You are just not able to guarantee 100% wins on all bosses. But you can still sell gear.



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