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Everyone, including myself, has been reporting how the RNG seems to favor bad players over good players. It happens too much to be a coincidence. But with that said, the OPs point is that because it's random, there is no such thing as "earning" your loot, because it's completely random. This is, no joke here, the same logic as communism; you don't earn anything, everyone gets exactly the same chances as everyone else, even if you carry the team and everyone else is dead weight.
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I play this game as mostly PvE. I think it's nice if someone bad at PvP (I usually get 4th) can play and have a chance at things. There is no good statistical evidence last place as a better chance than first. If you can provide me a study with hundreds or thousands of samples then that is evidence.you see more stories here about whining the worst players get stuff because no one will come on here and complain about get an exotic in first. Also there might be more whining because 3-6 make up 4 players and 1st and 2nd make up 2 , meaning there's twice the chance 3-6 will get it than 1st or 2nd. Learn statistics.
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I think he understands it just fine, he just thinks it's ridiculous. It's you that's not understanding.