"Badges yes, nothing more."

While I agree with Kerag here in that it should be "Badges...nothing more", my reasoning is a little different. Look at the looting from the programming perspective. Let's say that Player A has X Quest, Player B has Y quest, and Player C has neither quest.

If Player A is the "looter", then only item A gets looted, because Player A cannot see (or loot) item B. Likewise for Player B. As well, if Player C is the "looter" then neither item would get looted automatically, because he cannot see either item.

Autolooting Badges works nicely, programmatically, because the code is most likely very little different from just looting one Badge for an individual. I am thinking something like this:

Individual Looting:
if (Player A has not received Badges)
Player A receives Badges.

Mass Looting (in a programmatic loop):
foreach (raid member in raid group)
{
if (raid member has not received Badges)
raid member receives Badges
}

Basically, a relatively small addition to the code, where quest items would require additional checking to see if the player has completed the quest, or if they are otherwise ineligible to receive the item.

Also, throw into the mix "quest" items that only one member of the raid receives (Key to the Focusing Iris), and it gets much more complex.