The loot system in every game is something that needs to be done properly to avoid abuse or griefing or just to function in general. In ffxi i think everyone will agree that system left something to be desired. In other games like tera you get a large selection of options for loot distribution so things were fair and everyone could see what those options were.
In ff14 the system is very simple yet does a good job of distributing gear...almost. You see there is 1 flaw in this system (some of you may dissagree here), that the GREED option for looting does not take into account the equipable level of the item, and the actual level of the jobs that can use it. Essentially that is the spirit of greeding an item, the fact you are not on the job that can lot it but want it anyway.
I was in a garuda ex party where a striking ring dropped, and we agreed to let the tank greed that ring because no one wanted it. Come the end of the run it drops and he greeds it...and so does someone else who ended up getting the ring. Now you can easily say "well thats how he system works so tough luck". And your right, that is how it works. However, this person who got the ring didnt even have monk or dragoon unlocked so they didn't have any business lotting on it anyway. But maybe there is a way to fix that.
I propose to add an extra button in between need and greed called "want". Need and greed will both function as they do now. Want though, would be for people not on the current job to equip the item, but have it leveled high enough that they could equip it if they won the item. This wouldnt stop people from breaking their word on drop rules, but it will keep those people unable to make use of an item at all from making an item a paperweight.
To fix the other issue about people breaking their word on lot rules, the party leader should have the option to change what the highest lotting rule will be. So if want is the highest, no one can need. If greed is the highest, no one can need or want. These rules would only be allowed to be changed outside combat otherwise this could be abused.
Although the current system handles drops pretty well, it could definatley be taken further. I dont see any cons to not make these changes. If you dont have a job high enough to equip an item you should never be allowed to receieve an item over someone who does. Even if you do eventually plan to level the job. If you want an item, level it up like everyone else did. The only time its ok, is when no one else wants it.