You said right in your own post though why it is the norm? It's because it was just free-for-all. It's just using the system the game has in place instead of the hassle of making rules since some people simply don't care if people greed on whatever.
I mean I personally don't roll on stuff I can't use, but if there were no rules about the loot and it is simply default rules of n>g then I accepted those rules when I joined the PF? How can I be upset or call the others "greedy" if they do roll on something?
If someone wants something specific they can ask for it and honestly most times I see this happen people pass unless they were also capable of using that same item and wanted it as well.
I mean how can you call that "greed mentality" when you don't ask for what you want from the other people or ask the PF group for the specific drop you are going after to see if they will pass if they can't use it? It is sort of like calling people greedy, but...you wouldn't know if they were since you didn't ask. They might have happily passed it if they knew someone else wanted it as a kind gesture.
In the end though it is the leader's PF and they kinda get to say what the loot rules are. If you prefer different loot rules you are free to make your own PF where it stipulates "only greed if you can use it".
It's like a public park with no real rules about how long you can use the playground equipment and you and your 3 friends are using the 4 available swings and chatting and swinging and others are using other stuff on the playground.
Then one comes over 5 mins later and screams at you all for being "greedy" because they wanted a swing....but you and your friends are like "if you had asked we would have shared with you we didn't know you wanted one" so these 4 friends were actually not greedy people they just didn't know that they wanted a swing when they never said anything or asked if they could use one.



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