Mingka of Dath'Remar shares her story of genuinely needing an item that dropped on a Sunken Temple run, the Robes of Insight, only to have it snatched away by greed. The hunter in the group rolled need on the item as well, with the excuse that his alt/friend/guildmate/girlfriend needs it also. The bottom line question: who is allowed to roll on an item that drops while grouped? The debate continues, but people are very united in the answer that items should always go to players who were present for the drop and need the item as a direct upgrade. What happens if nobody directly needs the item is still a question.
I personally think that loot should be discussed if a clear upgrade situation is not present. Many people have alts, and would like to outfit those characters. But All of us have mains that require funding and gear/enchant/gem upgrades to progress further.