It’s totally ok to need on items you can use. It doesn’t have to be MY definition of use, or THEIR definition of use. If you’re able to need or greed on it, it’s fair game and not punishable. As others above have mentioned, it may anger some people and get you some nasty whispers. Report anything that violates the rules. I keep my whispers where I can’t see them, not because of what I need or greed on, but because every time I loot something 5 people send me whispers demanding the item because they lost a roll.
As others have mentioned, if you do things that the group doesn’t approve of, they likely will not invite you back, and may kick you on the spot. This is within their rights, as much as your use of your gear is.
Why don’t you put the Raid Leader on the server blacklist? It’s their fault for not setting Master Looter. Your idea of “stuff was SR’d” and “everyone pass” is not a loot rule.
Just to be clear, he followed the game’s loot rules. If you don’t want people who might not follow your particular loot rules, then don’t invite random people and especially ensure that Master Looter is selected.
But above all? Keep the realm drama to the realm forums or Discord.