[quote]The game should detect which players are good and which players are bad, and give bonus "rolls" to their loot rewards if they performed well, and give penalty "rolls" to the worst players just to teach them a lesson that you need to play good if you want the best loot in the game.[/quote]
That's an awful idea. What you'll do is keep rewarding the same players while the lower performers are eventually pushed out of the game in frustration, creating a cycle of frustration and exodus until you have a few good players sniping back and forth in an overall dead world.
Punishing people who aren't as good as the top player isn't a strong solution. Especially when those are the players who need the most aid/enouragement in a game designed to have a long life. Taking care of them and bringing them up will increase overall player longevity.
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