There is not a huge problem with the normal drops being distributed using the current system, however I agree for more exclusive gear and endgame activities there should be some further form of control in distribution/lotting.

Maybe some form of party loot pool could be implemented as in FFXI where all party members have visibility of exclusive dropped items and are able to lot or pass. Generally in endgame most people were honest enough that if for example a Torque dropped in Sea and it was allocated to a certain player who had won the bid to get the item, all others would pass for them to lot it. Yes, I have heard stories of people being sad enough to ninja-lot items, but I'm not sure that there is any way around this 100%.