Also in regards to loot it has been pointed out several times that situations can arise where people feel left out or jilted in group where they actually know and like each other. For me personally LFR will likely be my only way of stepping into Tier 13 and I look forward to that as raiding is something i have missed out on since my work schedule changed.

http://wow.joystiq.com/2011/09/16/ready-check-how-to-handle-raid-loot-systems/
http://wow.joystiq.com/2011/09/23/ready-check-looking-into-dkp-loot-systems/

Both of the above articles go into detail about the nuances of loot for people that in most cases don't mind passing on an item in the name of fairness. With the current LFR set up everyone will roll on everything that drops (even if you plan on vendoring it, giving it to the guildy/buddy you queued with, or just want it for transmog purposes) I think there is a very real chance of players becoming disenfranchised with the system very quickly.

While it is easy to say "Oh, well it is what it is..." I would prefer to try and offer ways to refine the system so it doesn't become another WOW feature that people refuse to touch after the novelty wears off.