Hmm I think the idea was calling for a game mechanic to form parties (not spawn parties, but parties of adventurers, like fellowships).
This is quite common in MMORPGs - basically, the kills in the parties are divided among the party members - although, some systems give most of the xp to the one who kills, others split all rewards equally.
The only issue with this is - you could get xp from monsters you could not kill (or even damage) on your own normally.
If this were to be thought of, there would need to be a level restriction on how different the levels of the players in the party can be (so you don't have a level 10k with a bunch of level 200s).
As for loot - yes it randomly gets divided (or evenly divided) between party members... but as madmaniacal1 said, you don't need a game mechanic to do that with friends.
In past iterations of this idea, other ideas included the "party chat" (or fellowship chat) similar to clan chat, where you can talk with your party members. Just having that in the game would make players love it - clan chat without the clan aspects. Friends would form parties and never leave
