They assumed that the community was smart enough to hit Pass if they do not want. At this point SE Can't win for Losing.

2) The game allows you only to acquire one piece of gear via Need/Greed per week. In any other case, gear can still randomly fall into your inventory if nobody lots for it. This would also solve the problem of literally having no reason to do this dungeon for the rest of the week after getting your whopping one piece of loot.
The problem with this is premade groups would just abuse and pass to the person who actually 'need' the item.