The way the MoP loot will work is as follows:
(btw, inc wall of text)
For 25man: Exactly the same as it does now, congratz, you don't need to worry.
For 10mans: Exactly the same as it does now, congratz, you don't need to worry.
For 5mans: We don't actually know yet.. Presume it will stay the same, EXCEPT for LFG, which I imagine may work like LFR.
For LFR & World Bosses: It changes!
Step 1: Kill boss
Step 2: Game randomly chooses 4-6 people to win gear. (They are still choosing the number, will be fixed on release)
Step 3: Game then randomly chooses a piece of gear off the loot table that is spec appropriate for that winner. Yes, this essentially means, that the boss has 34 different loot tables, to accomodate all the specs (Although, yes, I know some will be very or even exactly similar). It has not been 100% confirmed, but Ghost Crawler did state that it will probably not give you a piece of gear if you already have (Note, the "probably" here is them not having decided, not that its a 98% chance it won't.).
Step 4: The loot is then given directly to the player, they cannot trade it. But may DE or vendor it if they choose.
Step 5: Kill next boss.
So essentially, the boss will die, upto 6 randomly chosen people will have a piece of gear that they can use that is spec specific placed into their bags. No player interaction is needed.
Token Things from Dailys:
The other change they are making to loot are these token things. You get them from doing specific dailys as a reward (unsure of to the exact number, but 5-10 a day is likely to be offered). When you have enough of these, lets call them Token A, (say 50 or so) you can trade these in to a vendor and get another token, lets call it Token B. When you kill a boss, in either 10man, 25man, LFG, or World Boss you will be asked if you wish to use Token B by the game. If you choose to, the game will randomly decide on a prize for you, it could be gold, flasks, potions, pets or a piece of loot off that boss that is spec specific to you.
Heres an example in a 10man guilded run. You kill the first boss, hurray! 2 pieces of loot are randomly chosen off the bosses loot table & you are free to Master Loot them as you see fit, (Exactly the same as it is now). However lets say three people in your raid group have been doing their dailys and have One of Token B, a Blood DK, a Shadow Priest and an Elemental Shaman. The game asks each of them if they wish to use their Token B. The DK & Shaman hit yes, the Spriest hits No. The Spriest hit No because he would rather use his Token B, on the 2nd boss, which they also plan to kill this week. The game does its random number generater thing & decides the DK gets 500g as a reward, gives that too him directly and thats him done. The game does its random number generator thing again and decides the Shaman wins a piece of gear, so it looks under its Elemental Shaman Loot Table for Boss 1 & randomly chooses to give him the shoulders. (So these will be mail, intellect, and 2 of haste/crit/mastery/hit). So overall, the group received 3 pieces of gear total from the boss. 2 were Master Looted and a 3rd was a reward for using the Token.
After all the talk about them changing how Valor works.. It hasn't happened. Valor gear is still a thing. Except it is now also tied into a Faction. So you not only need to collect your 1000 Valor a week, but also get the Reputation for that Faction to Honoured/Exalted as well. Have fun in your grind!! That will teach you for complaining about standing around in Org all day..
They are also changing how we will get Valor, it will be awarded for a bunch of different things now, including dailies, challenge modes, 5mans and raiding.
Edited by Vrashnar on 9/24/2012 4:02 PM PDT