I would definitely prefer it. It's a part of the essential MMORPG feeling of being in an existing world that you share with other people. That piece of loot is a distinct object in the world; it's a group achievement and so it should go to the group. It's just as important as having a creature in the open world be the same creature a nearby player can see and interact with. Or... should give every player their own instance of every mob because players can't be trusted to not steal tags or grief a quest area?
You see how every single essential MMO element of this game has been eroded because players can't handle playing together? Group loot, master loot even, does not
cause drama. People do, and you can't out-engineer that without out-engineering the positives of real interaction too that MMORPGs are especially capable of providing.
We don't have to have a truly social game; you should be able to have whatever kind of game you want, but I enjoy it. Playing on and off since 2005 I've never had a negative social experience worth remembering or complaining about.
I do, however remember one toxic loot moment from Black Temple in BC where the tank officer who used all his DKP to be geared as heck wanted the shield from Illidan over me, but this is actually a fond memory I joke about with my friend to this day. It was actually a proud moment because we only got that kill because I swapped with him and did his job better than him on the first or second try and we finally got the kill. The shield ended up going to me, and he was butt-hurt about it with his officer privilege, and none of that "drama" would have happened without a master-loot system, and people to connect with over the value of that loot. Even if I didn't get the shield, I would have just left the guild and shared that story proudly to a group of people more on the same page.
And let's not forgot those really special moments when your group thinks you did really well and wants you to have the loot, and your "competition" doesn't mind passing on it because it's a bigger upgrade for you. That's meaningful. I'll admit... I'm realizing you can still do that kind of thing in the form of trading. It's just not as much of a public, group decision. It doesn't emphasize the guild dynamic as much.