You've nailed it.
Many may agree and many may disagree. The truth is simple. Randomized loot, though not bad when implemented within a larger scale loot system, is a horrible way to distribute rewards to players for completing challenges.
Personally I have killed Crota 23 times since release. Since week two I have killed him three times, deleted and re-leveled a character, and beat him a fourth time. So I have killed crota for loot a total of 23 times. Yet this week I received my first raid ship and helmet, and have every raid weapon except for black hammer.
Rewind to pre DLC. I hit up atheon like a freight train for the vex Mythoclast. When it was nerfed I was not concerned as I had already calculated Bungie's mistake and knew where the buff would bring the weapons damage to. The week of the atheon fix, where you could no longer push him off the edge, I was awarded this weapon. Since then I have received it on 6 other occasions, each of which I have wished for the ability to give it to one of the other members of my fireteam.
I have many of the available exotic weapons, and armor. So many now that I am no longer excited when I see the yellow blip on my screen. Most likely I am being rewarded my third or fourth no land beyond, or ice breaker. Weapons which if I could give them to a member of my fire team I would. I have easily been rewarded enough exotics to cover every available exotic in the game. Yet I am missing a few exotics, some of which I would really like to have. I'm at the point where buying exotic shards from Xur would be a waste, since I have roughly 20 exotic shards at the moment.
Now that I've been entirely too long winded in my reply to this post. I will finish by saying.
This system is all about luck. Some people get lucky, others are lucky more often, and others are unlucky. Ultimately luck is not enough. A simple modifier to luck using total kills, k/d ratio, total points scored, number of times activity has been completed etc. would increase reward opportunity based on achievement and skill, give players more opportunity to receive items, and most importantly it would not guarantee any specific item be awarded to any player. This would solve one of the biggest arguments against a rework of the reward system.
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My main argument why a Trade system would also fix a ton of Destiny's problems. I've gotten 4 exotics, only two armor pieces and two weapons, for all 3 of my characters, and then I wear of people getting their 6th exotic helmet. It makes me mad how the loot system is based on luck. It's bad for people, like me, who have horrible luck. I never got an exotic outside of purchasing it, nor have I ever been dropped even a legendary.