Everyone should be allowed to progress their character, and loot dropping in LFR allows that. No loot in LFR means it only gives 90/45VP per completion and ends up being a Valor grind alone, which in turn is useless because all the Valor gear is locked behind two reputation grinds. Also, no loot in LFR means a lot less people run it (because at least some were running it just for loot), meaning that raids again get less exposure and are cost-inefficient to make, which is why LFR was implemented in the first place. This in turn makes LFR a failure, and raiding as a whole gets scrapped as it's not worth spending money on a tiny percentage of players.
Would you want that?
---------- Post added 2013-02-28 at 10:15 PM ----------
Was easy in WotLK, all I had to do was farm up 5-man Heroic epics via LFD to boost my Gearscore and fake my achievement via Underachiever and I could get into a PuG to clear 10-man Normal modes (because guilded players saved themselves for 25-man raiding), which gave me the achievement to get into the most casual raiding guild on my server that allowed me to raid without voice chat and clear most of 25-man Ulduar and Trial of the Champions before ICC came out.
Now I can't farm epics because it's behind weeks of rep grind, my item level means nothing because I don't have the achievement, I can't get into a PuG for current content because cross-realm raiding of Normal of the current tier's disabled and everyone's saving their lockout for their guild, and when I do apply to a guild with whatever I have I'm turned down because of time restraints, one incorrect reforge, cheap enchants or not having max cooking and alchemy.
It was very easy for a new player to raid. Now it is not.