Well Blizzard decided to act on what had been going on for the first week of the LFR system. People who they have found out have used this exploit were given anywhere from a 3 to 8 day ban. What this basically has done is taken away a week of raiding from players in top end guilds and in turn has made it so the ground they have to catch up to attain world first kills is a substantial one.
Here is Blizzard's official statement on the suspensions
Shortly after patch 4.3 was released, we became aware that some players were abusing an exploit to obtain loot from the same Raid Finder bosses multiple times in a single raid lockout period (one week). The Raid Finder loot mechanic is of course intended to only allow a person to roll on boss loot drops once per raid lockout period. The raid lockout mechanic has been a mainstay of the World of Warcraft rules since Onyxia and Molten Core, ensuring that no one can obtain loot from a boss more than once per lockout. Due to the nature of the exploit and the clear intent of those who abused it, they've been issued notices and given temporary suspensions from the game. We’re also working to remove all Raid Finder items from those who used the exploit.
Some would say it was Blizzard's error and therefore the players did nothing wrong. That is like saying if someone left their bank card in the machine logged in it would be ok to clear their bank account out. Yes they were not the brightest for doing this, but the players in this case knew what they were doing was wrong and should have acted accordingly.
Paragon who is always under the microscope posted this apology on their website.
An LFR Apology
There has been a lot of misinformation going around, so to clear things up, here is a truthful account of what exactly happened with the LFR and what we have to say about it:
The patch hit EU servers on Wednesday. We started off with our 5x Firelands runs to wrap up legendaries and called it a night. For Thursday, we had an elaborate plan to run a personal LFR raid for every main character to get the maximum amount of loot.
As we were doing the first few runs, we noticed an unrealistic amount of tier pieces on some guilds' armory profiles, which we thought was unattainable through normal means. We started looking into it, and found out that you can loot passed gear from bosses, regardless of save status, if you zone out and back into the instance. This did not provide the raid with any extra loot, but it did eliminate a major portion of the RNG that would have been involved in simply doing personal runs for everyone.
We acknowledge that using this unintended behavior, which was quite clearly a bug, to our gain, was wrong. The fact that others were using it as well is no justification for doing it ourselves. We apologize for doing it, and accept whatever consequences follow.
This shows that the knew it was wrong and they did it anyway. This really shows you what guilds have been doing to get world first kills. in 4.2 entire guilds faction changed just to get a 1 week ahead of everyone else. There was no ban in that case and Blizzard had to change the system. Also the entire Lich King issue last expansion. Now is this because it is competitive or because the guilds feel they have to cheat because everyone else is? The whole steroid issue in some professional sports only time will tell. Until then I think anyone who exploited this should get what they deserve.