Your guild sounds like mine. I still remember when we'd run with a certain Paladin from a sister guild, and he'd have to put on Master Looter and threaten us with "Look, either you decide amongst yourselves who gets it or I'm just handing it to you."

And several times he did have to forcibly put it into someone's bags because of the "You take it"s and "No it's better for you"s.

Strange AWESOME. I want to join your guild. That's the kind of stuff I'm always doing in PUGs.

The guild that I had, that fell apart sometime before the Firelands came out, basically had this system. We had very few people who actually shared gear, and the worst was between myself and the other hunter. We were always very good about knowing the others gear and knowing when pieces were more valuable upgrades for each of us. When it came down to something that, say, all the healers or both of us needed equally, we rolled. There was never drama.

Sure, sometimes it was sad to finally down a boss and watch a PUG take a piece of loot. But the few PUGs we had tended to raid with us sometimes, and a few of them ended up joining, so it worked out.

Yeah, that's been my experience, too. In BC we used EPGP, in Wrath we used a modified DKP system that was sort of a cross between DKP and EPGP, and now we roll for it based on need, and disagreements involving the winner wanting someone else to have it are far more common than the inverse.

We often have to get one or two people to fill in who aren't in our guild, let alone our raid, and we've never had any problems with people being upset when a pugger got loot.