No, the tool in TBC Classic is very barebones and not even very easy or convenient to use. The Looking For Group tool even in original Wrath was much more user-friendly (and widely used) than the one from TBC.
Of course, it shouldn’t be random. In a world with no Dungeon Finder, it would be a pretty grievous slap in the face to the players to force any kind of RNG into forming groups. They shouldn’t take player agency away.
That depends on who’s forming the groups. There will certainly be a lot of people who will only invite people with good gear and whose class fits a specific group comp they want. But that doesn’t stop you and other people from forming your own groups and taking anyone who wants to go.
“That daily” didn’t exist until 75% of the content and more than 50% of the lifetime of the expansion had passed. By the time we reach the ICC phase, there will already be two seperate “tiers” of catch up dungeons (which award badges) as well as the daily and weekly quests for dungeons and raids.
One of those two catchup dungeons awards gear that allows you to run Trial of the Crusader. The other awards gear that allows you to run ICC itself.
Why would you say there hasn’t there been a “population crash” in TBC Classic then? We’re capable of checking item levels now, and indeed very many groups are formed by people who only want people with gear or specific classes.
What features?
Also, you do realize that Class balance and systems features are literally entirely different departments within the WoW team, right? The people on the Class balance team don’t alter the game’s code as system designers, they’re basically mathematicians who identify and solve problems in numbers.
The team that develops system features have absolutely nothing to do with balance and are only there for improving the UI, systems and features of the game. They’re the ones who work directly with the code. The people working on Class balance do not work directly with the code of the game.
Broadly speaking, WoW’s development is distributed among several distinct teams: Class balance, systems and features designers, dungeon and raid encounter designers, lore and quest writers, and art/asset designers.
There’s a reason why, when you watch WoW panels at BlizzCon, each person on the stage represents one of these teams, and each one of these people will take different questions asked there.