Indeed, one of the plus points they tried to sell us was that group loot everything is tradeable. They could have just applied that to PL and it would have been great.
One thing you can be sure of, no matter what the system, players will find a way of abusing it. The problems just shift every time.
Maybe the answer is a loot philosophy that has not been tried yet in WoW. Like the one I described a few posts above
The re-roll tokens we got for extra chances did let me target bosses. Although Iām not sure Iād want to kill Hc Sark three times, Iāve given up on doing it once a week now.
the system I described above is one where you either win a roll on something or if you lose the roll or pass, you are not locked out of more chances for loot.
Of course there is the issue of how WoW raids are built to take a lot more time due to the legions of thrash mobs and the huge number of bosses.
They are definitely not something people enjoy doing many times per week
Oh I realise your suggestion is different, I just meant weāve had something similar.
During Legion I was very sick of killing Varimathras for his trinket. And I just canāt face Sark Hc atm even if I could get extra chances at the loot Iām missing.
I could potentially face Sark HC up to like 3 times per week if there was some meaning to it (building up bad luck protection) thanks to streamer raids + my guild raid.
Because you want the loot only for staying in group instead deserving it for your performance.
And thatās completely unfair.
My guild is on a raid break so Iāve only really been able to pug and itās been an awful experience so I just donāt bother any more.
I want loot for being part of the group that kills the boss?
Do you believe guilds give out loot based 100% on performance 100% of the time?
Horrible strawman argument.
OFC OMG, guilds give items for 2 good reasons: performance and needings for the group!!! Not cause you come to raid.
Edit
Lol Iāve kicked from my guild ppl with that mentality years ago when ML. PPL who wanted drops just because they came like all others.
But they donāt, guilds and pugs do not have a perfect sense of morality lmao.
Correct me if I am wrong here, but as far as I know, depending on what token you are collecting, it can take up to multiple weeks to get gear pieces from tokens alone.
You can also see there who rolled and what on pieces in a similar way we have on WoW, yet there it does not seem to be that big of an issue as it is here. That is likely because of how loot specs work.
Having some sort of token system, like what they had during Shadowlands where it allowed you to pick 2-3 pieces of your liking from raids would help on the situation. Or give people the option to exchange a large portion of their crests at a vendor to buy specific pieces (wyrm for the heroic one, drake for the normal ones and so on).
That would give a goal for people to aim for, and it likely also solves the problem of people gearing up too fast, which currently contributes to the lower player numbers as well.
Easy, make friends and play in guild.
Can you not read?
This happens in guilds too 
If you are feared of your guild just leave and get into another.
Mostly ninja guilds are not able to survive.
So you have still not mentioned a downside to personal loot with no trading restrictions 
A horrible take. If you have issues with someoneās performance you work with them to improve on it, and if that does not yield results then you can talk with them about taking them off the roster. If you are the guild lead you should have officers who can do the coaching/talk. If you are the RL then it is your responsibility to see if you can improve on the situation.
Just starving them from loot without telling them what is happening will only breed discontent within the raid group.
This of course if you are raiding mythic. For heroic I see little reason why you would be stingy with loot.
Look up the twitch streamer named ScruffyGG these days he organizes heroic Aberrus raids 2-3 times a week.
It feels a lot more like a guild raid where a good chunk of the people are regulars.
The Wednesday raid is more of a mains raid, then there is an extra sark hc raid on Thursday and a beginner friendly run split between Saturday and Sunday (Sark HC is left for Sunday).
The main requirements is one having at least basic enchants + consumables and joining discord. Nobody cares about having AoTC there, just being able to listen to instruction is more valued.
The raids start at 20:00 server time
Nice, Iām fully gemmed/enchanted, gemmed, bring flask, potions, food, rune etc.
Guild runs are just smooth, we mostly just one shot it and then you go to pugs and itās wipefest and a constant emptying and filling up, rinse repeat.
The raids done with Scruffy and the rest of us at this points are also generally one-shots. The main slow down is a bit at the start when some people still have not enchanted or joined discord in spite of being asked several times and need to be filtered out 
Since the implementation of the cross server trades, he is also giving free Vantus runes to those who do not have for Sark HC