I cringe everytime I'm in a group and someone plays the NBG card. What's worse, is when the other four players are cool with NBG, so arguing about it is pointless; the option becomes to accept it or leave the group (and lose rep).
NBG has NO place in pick-up groups.
Next time you're in the bazaar, drooling over that uber attuneable item from WoS or MPG... how exactly did that item end up for sale? Even more curiously, is the item being sold by a class that can use it? Disregard mules for the moment. If an item is usable by a class that is selling it, what is the probability that he or she claimed NBG and never intended to use it other than for selling?
But that's just one example. Another example mentioned earlier in the thread is, if I'm better equiped than someone else, then NBG suggests that dropped loots will go to the ill-equipped first. What is the motivation for the better equipped character?
Another example is, how is 'need' determined such that it qualifies for NBG? A good interpretation, already offered, is "the item can be used and will be used." But, what about the instances when two or more players can and will use the item, but the upgrade varies with each player. The item is worth +10hp to one player, +10 INT, +5 SV ALL, +50HP to another player. Clearly there is a case for "greater need", but then the argument falls back on to the ill-equipped player always getting first loots.
Also consider, an item's value is determined by its alternative uses. While it may be an immediate upgrade for someone, to me the item represents fast and phat cash with which I'd use to acquire an upgrade for myself.
Finally, the reality of EQ is that there are plat sellers. Any opportunity someone has to obtain a sellable item, they will take, even if it means citing NBG. Resist this behavior; don't let these people control the loots.
The circumstances where NBG can be tolerated is when the item is NO DROP (aka NO TRADE) and in guild situations; it goes without saying, groups with friends would generally apply NBG.