Hey there squiggles!
I can sympathize a little with your points, but you're not doing yourself a favor with this thread unfortunately. ^^;;;
The root of a lot of linkshell problems is the terrible system itself.
Question #1: Why do linkshells need applications in the first place?
Answer: Because at the moment there's no way to boot a member unless he's online. The only way to boot someone who quits game or doesn't log in is to break and remake a shell, which is like moving IRL. Everyone hates doing it and it usually costs the LS a lot. There's no real content to measure skill in the game either. Truly challenging content has only just been introduced. So all the processes of elimination and testing is scooted up to the beginning, the only time with the LS has any real control of itself. It's really sad.
Question #2: Why does class favoritism happen?
Answer: This is a flaw of the game. The LS may have a lot of membership to help get through content. Going through the content in the most efficient fashion benefits the LS as a whole. Your secondary question: Why won't they train people to do a class you won't play? Well, did it not occur to you that maybe someone else in the LS doesn't want to play that class either? Otherwise, wouldn't it make sense to recruit within their own ranks to fill holes in parties? Most LS'es have many members who play multiple classes and rarely recruit at all.
Question #3: Why does loot favoritism happen?
Answer: Because your friends stare at you after the party is over. You may have gone home happy after gaining that Darklight Drop, but sometimes, avoiding drama in the LS is worth offending someone you probably won't see again. A lot of times, drops will get passed to /random winners regardless of whether or not they use/want the item, because LS system has NO features for wishlists in the game or the LS is not organized properly. Or maybe they just don't like you. No one passes good gear to people they don't like!
I hope that helps you understand why LS are so picky and irritating. I'm hoping that LS features and free companies introduced in 2.0 will help solve a lot of problems.
In the meantime, be nice and flexible.