Yup. Non-instancing basically acts as content gating to keep people chasing the carrot.
Personally, I don't mind non-instancing at all because I enjoy the social aspect of raiding more than really caring about the loot. So if on a quake we only kill 50% of the hoped for targets, that's fine. Loot on a Velious locked server is kind of pointless anyway...like yeah it's fun to strive for upgrades and it's cool to get that really good item, but at the end of the day it doesn't really matter if you get it tomorrow or 6 months from now. There's no new expansion you need to gear up for, no drops that you need to help you in something like PvP battlegrounds, etc. Technically, very few pieces of loot will really make such a massive difference in your character, so we really don't need instances so that people can constantly have chances at various drops.
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