I think in a PUG that can stay together for many hours during a session, they might be able to amicably come to an agreement that greed is a perfectly "fair" way to distribute the loot. Especially if there is some sort of turn taking involved for multiple drops of the same high value items.
In most PUG's I have been in the turnover rate of it's makeup is arguably too high to make that arrangement seem "fair." I don't know how many times I've seen a new replacement join the group and win a drop within 20 minutes while that melee has been in the group for 8+ hours and can't seem to ever win that desperately needed upgrade.
The argument often times given is that "what comes around, goes around" and your RNG will perhaps be hot some other day. I think that argument might hold if you play for an infinite amount of time, but many people just don't have that many hours to put in.
NBG just has too many bad actors that go and sell that item even if they claim to need it. While Greed is at the mercy of RNG for all its faults - unequal time put in at a camp, inefficient distribution so players have to waste hours in EC tunnel trying to sell items they don't need to get items they do need.
PUG's just have a tougher time in most aspects of the whole game, and loot distribution is just another example.
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