Why do white item drops not adhere to loot distribution settings in multi-player parties?

I don't understand why white items are free-for-all pickups for anyone in the party no-matter what you set the loot rules to.

This make little sense to me and can cause confusion during gameplay and hording of "important" white items by one player. "Important" white items are items which have quality affects, have sockets, are base item types that can be chanced into uniques with higher frequency than other white items or are just target base items for more vanilla crafting.

Is this intentional and if so, I would be interested in understanding why. If it is not intentional, I would prefer that white items be included in the looting rules just like magic, rare and unique items are or at least augment the existing loot rules to add a rarity cap to items that are or are not affected by the looting rules of the party. For example - the party leader could set that only rare and unique items are distributed via the loot rules but whites and magics are free-for-all.

I appreciate your attention and time.

Thank you,

S-