I think Joe was more down on the gameplay than the loot system you describe in your post. Doesn't sound great to me to be honest, particularly the Rogue system just seems dumb.
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Dark Zone /Rogue system for sure needs some changes.
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The rogue system only works in the dark zone, if you shoot someone who hasn't been considered rogue, you become rogue and a bounty is put on your head. (which you get if you survive the duration of the bounty, but if you die you lose dark zone xp) This kees players from continuously slaughtering people for no reason. Basically don't shoot people like a dick.
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I get that, still sounds crap.