Back to the loot system discussion. Ok, lets go with the assumption that instanced loot is the fucking devil and doesn't belong within a skags length of the Borderlands universe. Ok, instnaced look = ass. Let's address the shortcomings of the current loot system and the lame excuse Gearbox gave for leaving it the exact same system we have seen across multiple generations.
First and foremost, as I just mentioned, they didn't develop this system for Borderlands or to set a tone for Pandora. This loot system is pretty much the generic standard for many years. Of course their variety of loot is brilliant but the actual core system is nothing original, and certainly not catered to the "tone" of the game. That is PR bullshit at its finest.
Second, the duel system does nothing to enhance the free for all tone that is supposedly the goal of the design team. If this were the case, I wouldn't have to accept duels, accept trade menus, take the time to put the item in the trade menu and then have both parties to agree. You think the asshole who runs ahead or kicks other players to steal loot is going to initiate a trade duel? If you really wanted it to be a tense, kill or be killed world where all loot is the ultimate prize, let me have a chance to seek revenge on the loot whores. If you sit back and snipe with Maya and heal all your buddies, you are enhancing the gameplay experience and getting fucked over with the loot. It rewards anti cooperative gameplay.
Third, and most offensively, they have skewed the loot system toward 4 play co op. Solo play loot is terrible. So now you are driven to participate in co op play, which for many means playing with asshole randoms. If you are going to essentially force players to engage with three other players, most often with malicious intent that can include kicking players to steal loot (so pathetic), you need to have other systems in place to curtail this widespread trolling. In the same way the mute button became essential for any competitive online shooter, similar annoyance barriers need to be addressed.
The Borderlands 2 loot system is dated and does not enhance the co op gameplay in a meaningful way. I can accept that it doesn't hurt the game either, but then again I am lucky to have a pool of 5 different friends to buddy up with most nights. I suspect many do not have this luxury. As mentioned, solo loot is very poor making it a shitty alternative for those who don't want to play with randoms and watch everyone run around focusing on raiding chests instead of fighting enemies. Moreover, the idea of "you really need to take your time and enjoy all the great dialog and story of BL2" is contradictory to the, "you get shit loot if you decide to play solo and soak the game in" So, enjoy the story but get fuck all as a reward, or play co op and fuck everything and bomb around stealing everything and ignoring all the story and dialog.
If we are to stay with this style of loot drop there needs to be improvements in the systems that surround and support it. Expanding the dueling system would be a great start. I think something like a bounty would be cool too. As amazing as the story and dialog improvements have been from BL1 to BL2, the loot is still king at the end of the day. Hell, even the in game characters are "treasure hunters". If Gearbox wants to avoid instanced loot at all costs, that is fine, but that doesn't mean they should just leave the current system stagnant and dated.