I actually won a belt of lower ilvl than one I currently had equiped, but upon first glance the stat priority seemed better distributed than my current item, so I rolled need.
Between pulls, when time permitted, I looked over my stat priority score sheet and seen that my current belt was "slightly" better than the one I just received in LFR.
I did exactly opposite of the OP. I looked at my recount and the current gear of all the people who rolled need on the item, and passed the item to the person who actually needed the item the most. IMO, giving the item to someone who already outgears the content is a waste of good gear.
Peace,
Kir