I think you misunderstood. FFA loot leads to a number of problematic issues in multiplayer games.
- Feeling like you do not deserve loot that you collected.
In an 8 player game where everyone is contributing, 7/8 of the time that loot drop was not meant for you. If you picked up good loot it led to feeling that you took something that did not belong to you.
- Ninja looting
I will admit that I made a build to ninja loot because I got sick of carrying groups (If I stopped attacking, no one could kill anything it seemed sometimes) and not getting what I felt was my fair share. I get way more than I deserved and this type of unethical behavior should be frowned upon.
- Cheating
FFA loot lead to pickit and other cheating more broadly. In these cases, players did not get good item drops.
- Range characters
Range characters are at an inherent disadvantage in getting loot. I remember playing an amazon my displeasure when barbarians in the group would swipe all the arrows that they did not need.
- Scavenging loot
Scavenging loot does not occur in personal loot games but can in FFA games and is the epitome of lazy, unchallenging, and no risk gameplay.
Also, I am not advocating for the removal of FFA loot. I am advocating for a second option either at game or character creation. If it is at character creation, it would be an option just like choosing ladded/non-ladder or hardcore/softcore.
The reddit survey suggests that as many people want a personal loot option (if not more if you combine the two categories = 49%) versus those who want only FFA (39%). This is more than 2,000 people requesting a personal loot option.