First of all, forced personal loot sucks. It still sucks. It didn’t fix loot funneling, it just made it so that top guilds spend millions of gold to be able to funnel loot. That’s arguably inching toward a pay-to-win system. I can’t say whether it had an effect on the other problem it was ostensibly trying to solve, which is people in pugs not being allowed to have items, because I haven’t pugged since LFR came out, because LFR was the pug replacement, and I don’t do that anymore, because let’s face it, LFR just sucks. As for new guild members, well, we had a separate raid that we funneled all of those people to, but it fell apart, so now we mostly just don’t invite new people. Anyway, on to your actual question.
Let’s be clear here that “zero effort” isn’t literally zero effort. It’s shorthand for an amount of effort so minimal as to be trivial. In current content, Battle for Darkshore counts as zero effort. You can queue up, run around dying all the time, and odds are pretty good the rest of the group that’s forced to be with you (who probably isn’t paying attention to whether you’re being useful) is going to carry you through content. And for this, you deserve gear that’s equal to current heroic raid level. Doesn’t really matter if it’s only one piece for a weekly quest or a chance to drop off a boss; it’s still moronic that it’s the same level. Likewise, doing a couple world quests for a guaranteed item of some type also probably counts as “zero effort.”
What qualifies as earning it? In short, requiring a group made by players, not the game. That means mythic plus and organized raiding. Looking for Raid is welfare epics. Warfronts are welfare epics. Emissaries and world quests are welfare epics, but if they’re giving you gear of a level equal to last tier’s LFR, probably nobody cares, because those were welfare epics to begin with. Plus, I got four items raiding last night. Was any of that fun? Not really. The game just kinda handed them to me.
How do we react to someone with a higher item level? It depends. Did they earn it through an organized group? Are they a mythic raider? Is it clear they routinely clear high-level M+? That’s worthy of respect. They earned it. Did they just get lucky on a bunch of war/titanforge procs from welfare content? Not so much.
So here’s the answer to your ultimate question: what makes me feel like I earned a piece of loot? To be honest, part of this involves bringing back master loot. Because loot doesn’t feel earned when the game just gives it to you. That’s just you getting lucky. Loot feels earned when your fellow players give it to you.