I don't think there's anything wrong with players who want to dominate everything. I feel that it's very important in a game that it has a versatile playstyle - a design that caters to the tastes of many players. Let's face it, the character base is quite small these days.
To elaborate - Some players like to dominate everything on the server. Some players like to utilize teamwork to overcome challenging situations.
I like the flexibility and freedom to do both. I like that the game allows players, should they choose, to behave in a way that is ILR-ish anyhow. There's nothing stopping players from going "ok, let's make a group of lowbies who can only use what they find, and are not allowed to accept powerful items from other characters".
For me personally, I enjoy playing most of my characters as they get into mid level - L15-25ish is great fun for me!! Because of this, no ILR means I can get to play the bit of the game that I enjoy most sooner. And surely a GAME is to be ENJOYED, no? I work hard in real life, and so I'd like my downtime to be a little easier!

Above all though, my initial point, I feel, is the most important one - A versatile gaming experience allowing people to play the way they best enjoy. This means, letting the power gamers powergame, and letting those who prefer or seek a challenge, do their thing. ILR forces people to 'seek their challenge', which in turn forces a longer levelling process and more of a 'grind', I feel. Except I've never felt that "Grinding" was particularly fun, especially when trying to level up on a low-player server where you might not always be online with someone else, let alone someone in your player range or in the right faction.
-WyreZ-
(Novak E'lyn
Kami Xier
Tyr)