So what you are saying is that people who are good should be better while people who are bad should stay the same? How are they going to get better if they don't get the gear to be better? Also who are you to decide who deserves loot or not, you aren't the almighty god of loot.
Also judging a player based on gems/enchants is bad. For example my Druid was very lucky at the start of LFR and got lots of loot (obviously all had red sockets) and I got broke and couldn't gem everything or enchant most of it.