These blue engrams need to be removed from playlist activities and anything designed around difficulty or heroic.
I can understand them dropping in the wild but when you complete Gambit, Nightfalls, Crucible and whatever else that is requiring you to do lengthy activities, blues should never drop period.
I can see them dropping from regular chests on the planets, randoms dropping as you are playing the game and sometimes from regular public event chests but if someone is in a playlist activity or heroic, you should not see them.
You should be getting rewards from playlist activities such as:
One Legendary Armor
One Legendary Weapon
Additional Legendary when using a Ghost Mod
Possible Exotic
Rank 100+ should be rewarding you with materials, glimmer, bright dust and XP. You could even throw in some legendary gear and exotics too.
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I need those blues for glimmer. Bounties are quite expensive.