Simply put, exploiting the loot farming process unbalances the game by giving some players an unfair advantage to access gear that they would not have by conventional means; specifically players who loot farm for better gear and then go play PvP put "the average" players at an disadvantage because typically "the average" player is still trying to acquire said "loot" through the normal process of playing the game. I understand that not all loot farmers are looking to exploit the system to gain advantages in PvP, however this is a case of one bad apple spoiling the bunch and it needs to be amended.
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U do realise that all armor have the same effect defense and all weapons have the same effective damage as each other in PvP right? My exotic sniper does no more damage in PvP then my uncommon did. So saying that it unbalances the game is rather ignorant of you to say