Normal loot is fine, yes, but for special items dropped by NMs or future events, there needs to be more control over that. Different options that can be set by the party leader that says Free lot, Random Distribution, or Leader Distribution for instance.

Tight knit groups probably wouldn't really find the need to worry about ninja lotters or players who won't pass an item that one of their friends can utilize better. However, sometimes that's not always the case. Pick up party members are pretty popular as well and there needs to be some security.