But that's the whole point of the idea. The RL can bully you, but the item is already in your hands. Don't be a pansy and trade away shit you need. On the other hand, people complaining about loot master corruption and unfairness won't have anything to complain about.
If somebody told me to trade them an item or lose my raid spot, I would quit the guild and watch that raid fall apart. Its that simple. These days, the gap between the "best" raider and the "worst" raider on a mythic raid team is not that that big, everybody deserves loot.
Why would anybody do that, if somebody gets loot, they can determine themselves if they need it or not. If they don't, they can send it to the loot council to be distributed.