I just imagine the drama and hurt feelings and etc that come with st and aow loot, being for every top end boss. Every item is a dollar sign. Everyone with a "my alt could use that" is now a problem for someone else. Many basic quests are now for sale, but by extension, many basic camps are suddenly monopolized. Fg and storms drops can be sold? That market will be SO toxic.
Then there's the whole gear issue. Wanna join in, catch up, or fuck around on an alt? No mercy, either shell out hundos or get called for sucking. People are already iffy about undergeared groupmates when it's reasonable to be; nobody is gonna so much as sniff in your direction after a couple expansions if you aren't decked out.
I would rather play on a no tradeable server than a fv one.
I can't imagine how convoluted guild rules would be on a free trade TLP. You can't really look at the FV server for examples either because the loot on a TLP would be worth 100x more than it ever was on FV, thus making loot in general a far bigger problem for any raiding guild. I bet a lot of guild leaderships just for ease would say fuck it and make all loot available to all classes and you can sell it. Any type of trickle down system would never work.
You're right, every single camp would become just an absolute shit show. Maybe that's the appeal of it though. It would create a pretty competitive environment but only temporarily before the average casual players (your biggest buying market) would leave the server.