You guys sure are quick to jump on the "Life's not perfect? Leave the guild!" bandwagon. Is there really that huge a demand for prot paladins that you can up and relocate like that?
Every loot system has its flaws. If there was a perfect, universally acceptable setup, why aren't we all running it? I'll agree that being forced to pass a primary spec upgrade to a tryout is an odd call to make, but how much equipment did that guild
not force you to pass? Is one controversial item really worth up and leaving over?
As for multi-class competition: in my guild, prot warriors, rogues, and fury warriors all bid on equal footing for the DEL. I think that's the direction Blizzard is trying to go in for warriors, and we should expect the trend of non-defensive physical weapons to continue into WotLK. Odds are that there never will be a defensive spellpower weapon, but we're going to see the defensive physical weapons go the way of the dinosaur as well. Sunwell is the first glimpse of it, and the "AP now effects everything" warrior changes would mean +STR weapons will be a viable threat increase rather than dead itemization, as is the case with the haste on DEL.
-Splug
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(Usually) Prot warrior:
http://www.wowarmory.com/character-sheet.xml?r=Illidan&n=Splug