First of, I'd like this discussion to regard LR servers only, as higher rates have far more basic problems and shouldn't be concerned by this issue.
@autoloot is the most popular command on servers nowadays, and rightfully so. Never having to waste time picking up loot greatly speeds up the play, and you're never in danger of not reaching a particular item in the distance, or losing it because of death/disconnect. With the rising popularity of @autolootid, things have become even more convenient. Certainly a strong opponent to make a case against!
Yet servers that pride themselves on balance should not have autoloot. Here are some of the ways it's broken:
1. Spells like Storm Gust and Magnus Exorcismus stay on the ground even if you leave through a portal or flywing away. With @autoloot however, you can safely flywing as soon as the mob is deposited in the spells' area of effect, and no longer chance the loss of whatever may drop (like you, who couldn't possibly tank what you've pulled)! It'll be magically thrown into your inventory from miles away, greatly favouring classes that possess such AoE spells.
2. Due to the way damage in RO registers, you can avoid that red 20000 over your head by flywinging and it won't be substracted from your HP. Very useful versus enemies that dish out these killer skills frequently! @autoloot however makes this into a ridiculous "hit and wing" game. Take for example a Whitesmith that's all offense to Geffenia: You can flywing around Cart Terminating Abysmal Knights for cards happily while you're never in any danger of the deathly numbers they just inflicted actually becoming reality. This is just one of many examples, and if you don't think this is a big issue, aforementioned WS in Geffenia is far and away the best way to get money and rares on LR servers.
3. This one concerns partying with random people, whom you can not always trust. With @autoloot (regardless of item even share or not), you'll never know what drops, or who got it. A paradise for dishonest players!
4. It makes Snipers with their extreme range an overpowered, and thus overused farming class (think Tidal/Wool farming on NI). If you've ever played a server without @autoloot, you'll notice that this classes' presence isn't nearly as dominant. It's an issue of class balance.
Overall, @autoloot favours a solo playstyle utilizing flywings rather than a walking or static party, when I think the later is what should be encouraged. I hope not to have forgotten any important points, but while there are only 4 above, each of those has significance on LR servers that should not be ignored by the concerned server owner!
Let's have a worthwhile discussion, and I'll do my part in ripping the heads off of pinoy posters and other worthless respondents.