WoW's system works great, in my opinion. Even for raids and dungeons - it's personal loot, but if something drops for you that's good for another character, you can trade it to them within a limited time. There's a reason that's a standart and easy to get used to. That being said I have no idea how the inventory system in the game works for storing items/crafting materials(if there are any at all). For crafting materials I've seen a lot of games go through increasing stack sizes, to increasing max limits in different types of storage (examples from WoW crafting mats going from 20 to 200 and Elite: Dangerous materials going from a few hundred total to a few hundred per material). So far I'm not a fan of either of those, because I really hate managing inventory in a game that's not about managing inventory. I firmly believe that if I want to waste 3 weeks of my life and farm a material - I should have a place to store it, so that place should either have a very high cap or be endless. (Or be upgradable to that high cap)
I agree with previous posts that the loot system should be class specific or at least very class-weighted. After all, not everyone wants to deal with alts or trading, so other items that drop for them would be useless - unless there's some sort of a disenchanting/disassembling mechanic that's really worth it.
I also agree with gip0's idea about AoE looting, it's just a chore, so it should be done with the least interference to the gameplay. I'm not sure direct popouts would work, because in the middle of a battle that would be in the way.
Making the game harder by having harder to obtain items due to just random chance isn't that fun, no matter how much satisfaction you get from finally obtaining something - it should be because of your effort and skill, not plain RNG. There's nothing fair about getting a mount on your 4th year of farming, compared to someone randomly getting it on their first week. (Unless there is some kind of system that increases an item's drop rate if you've farmed it a lot).
P.S. Maybe introduce a like/dislike system for the forums, so we see which suggestions are most accepted? :)
Yeah many games have separate storage for mats I've played a lot of Guild Wars 2 and there is a separate storage for mats you have a button in you inventory with it you deposit all mats in that storage which you can see in your bank in a separate tab and it has a cap limit of storing them so you have to craft to make storage for more mats. Also they are categorized.
https://wiki.guildwars2.com/wiki/Material_storage