This is the solution I ended up going with on my custom emu box.
Everyone gets personal loot (though in my case, the max group size is 6) that gets credit for the mob.
In Daybreak's case, this would work a lot better to just have to tag the mob or have an average damage credit above the average of everyone tagging the mob.
Meaning, if you were below 10% (a reasonable threshold for most group and raid content being dps raced) you would get your own loot from the mob.
There's code I wrote for emu that also hides corpses from people, they could do something similar and only send the corpse spawn and 'decay' packet to people who have fully looted the mob. If you haven't gotten credit on the mob, you can't see the corpse at all, as you technically have 0 items and thus it doesn't spawn - and in the case of mobs killed while you're in the zone, it instantly decays.