Greed usually kicks in when it comes to loot even if its set to go to different people. It takes more than five seconds for them to become a "free for all" item. With five people in a party it takes a lot of ignorance to forget that an item is there and just keep fighting and have someone steal your loot. Even if no one in your party is greedy, which, I might add, is impossible in every way imaginable, someone is still bound to pick it up before its timer expires and is then able to be picked up by anyone.
Also I figured I might just go ahead and add that no one can "Ks" your loot as "KS" or any variant thereof stands for "Kill Stealing" and if your loot can be "Kill Stolen" then... well... thats just insane and an explanation on how that happened is definitely needed. I feel that your problem was caused by yourself and ranting about it was quite unnecessary. Although... some might say that the rudeness within this post was also unnecessary. But mind you, I didn't try to be rude. I'm just being as blunt about this as I can.
Oh and Ladi-Loki, that post was meant for the person who made this thread.