Quote fromQuote fromIt will be easier to explain this if we start back at the beginning. How will the system calculate a player's contribution exactly? You mentioned healing/[b]damage taken[/b]/damage delivered/[b]stuns/holds/etc[/b]. (I placed those items in bold for a reason.) Do you still stand by this method? If your answer is yes, do you intend for the system to just add up each item mentioned and use the total as the player's contribution?
Since your system's main function would be to eliminate rewards for a player who contributes little to nothing, these questions must be answered if any worth while discussion can continue.
Before he even starts, I want to add that you have to try to decern effort from not contributing, otherwise you have a social class based gear system where those who have, earn more and those without can't earn. Effort/contribution is extremely hard to determine and that's why loot systems are practically impossible at making everyone happy.
Having said that, are we going on the idea that a "proper" loot system will fix elitism? I'm inclined to disagree with that completely....
I didn't want to point that out so soon, but you hit the nail right on the head. Whether it was feasible or not to build an auto-loot system, a developer would be hard pressed to build it anyway as it would prevent players from gearing up new players at endgame. As you touched on, the better your gear becomes, the bigger the gap between you and the person you would try to help. Depending on how many tiers of content you have, the contribution of the new person could drop significantly. You would literally create a system of the have and have not.
Eliminate elitism? This would only serve to fuel it.