When we did it loot was assigned to class specific people based on the loot. Guessing it's working as intended.
No it's not, like I said even on Free for All the loot was assigned from the bosses that didn't have a chest mechanic.
AND, we had 3 Sith Inq's and still only one of us could pick it up. On free for all.
EDIT: So it could be that on "normal raids" loot is auto distributed (everyone gets at least something) but not sure.