At least competition mixes things up a bit. Getting all the loot from the same mobs over and over again would get pretty old unless there is a guild competition. I mean TMO and FE had a general hate for one another. So naturally that feud was more than just getting loot for your toon(s). It was about the other guild not getting the loot.
At least that's what I've gathered from reading the forums. I think it makes the game more fun to compete over raid mobs. One day I'll level a toon into the 50's and find out but from what I can remember from live... I liked the competition.
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