I do the same as OP. I feel bad for the guys that come into lfr in "bad" gear, doing their best, and losing the gear to jackasses with better gear who just roll for the lulz / vendorspec. I'd rather need on it and give it to the guy that actually does need the loot. I see this as being more right than handing the loot to the people who steal the only chance of loot the poor guys have per week just so they get awzum 10g for it @ the vendor.
Did Fall of DW just now actually, Gurthalak dropped, 4 people needed on it; a DK tank with 397, a "fury" warrior with full protgear and some pvp trinkets, another "fury" warrior with full parrydodgestamina gems and the rest pvp items, and then one retripaladin with full LFD retrigear. I won. Gave it to the paladin and made his day.