Back when I played SWG there were no instances. If your referring to NGE, that was not SWG I'm sorry. Though your overall idea is a good one, it does get frustrating trying to get a certain gear piece that never wants to drop.
Yes I'm sorry I was referring to Post NGE with their Heroic Encounters. Axkva min, tusken king etc. Pretty much the same thing as our Hard Modes.
You didn't have to worry about drops (as much) or if another of your class was in the group, because in the end, everyone got a step towards their goal. Bioware should mimic this. This system won't reward bad players, just players with either bad luck on rolls, or suffering from this current bad loot system.