Any kind of mechanism that facilitates grouping in a multiplayer game is a good thing. Obviously such systems always need refinement to group together like-minded players with a similar skill-level. Having a mechanism operate cross server is good because a lot of servers don't always have the requisite number of people and doing this reduces queue times significantly.
The arguments against LFG appear silly because they are. People opposing easier grouping in an mmorpg are completely delusional or just nostalgic about worse systems, and believe in a false "sense of community" in servers that never really existed. In an mmorpg, if I like someone the normal practice is to add them to your friends list, do raids/dungeons/pvp with them. If you find a bunch of people sharing your interests in the game you join a guild. That's actually where the real "community" in an mmorpg lies.
However there are some people that feel that mmorpg's should be some kind of facebook socializing game, so they want failtown trade chat pugs and the absolute lowest end of guilds (levelling guilds, "family"/"friend"/"casual" type guilds) to be the end-all of community. LFG/LFR actually wrecks this lowest tier of the community since a lot of people just use LFR/LFG instead of dealing with the ineptitude and hassle in such pugs and guilds. Champion casuals of these will vigorously object to LFG/LFR, naturally.
LFG/LFR is a huge success and it doesn't affect any decent raiding guild or competant pug/gdkp. It's worse loot, from easier bosses; for casual or bad players that want to experience multiplayer raid content quickly without having to deal with the bullshit of ninjaing failpugs and drama-filled low-end guilds. Nothing wrong with that.
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