The last ST I was in one party had 5 BRDs, mine had two BRDs, the third had three more BRDs. It was hilarious! But the only DPS to drop right away was the other DRG in my party that asked if I was going for pants too (pants didn't drop, so I guess he made the right decision).

Anyway, some gear is just too rare to restrict queue times for it. It may have only been a 1/5 chance for that one group, but if there were only two then still only one would get the item, and four would still be queueing to get that same piece. If the pants had dropped, I'd have had a 100% chance at them, or they might have just gone to no one if I grabbed a different piece first, and that DRG that dropped would still be out there taking up another DPS spot in the queue. There isn't really any long-term benefit to limiting the DPS, and it would definitely increase DPS queue times, cancelling out the whole reason why they made a party setup that would (and has) reduce DPS queue times in the first place.

I don't mind idea #2. The ranks fill up pretty quickly when half the raid drops after the first failed attempt at Scylla anyway (hint to people that drop on Scylla: the first attempt at Scylla always wipes, wait for wipe number 2 before dropping and you're more likely to get through faster than re-queueing and trying again with an entirely new group that isn't guaranteed to be any better).