If I had to guess, it probably had to do with the change of rules to tapping, and how much more quickly and unrestricted everyone would be able to farm. Perhaps that and the fact that Engineers really haven't had a lot going for them lately outside of some minor things here and there (weren't a lot of their "toys" recently nerfed?), so perhaps the larger-than-usual dev team that Blizzard had assigned to professions felt that Engineers needed something unique...
...or maybe you're right and the profession team is largely comprised of anti-multiboxers who made it a point to nerf the WoD loot-a-rang because they hate us.
Also, like Jabberwock, I've never used the loot-a-rang to loot, so I'm not one who is affected by this.
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