You use the term flooding the market but since there is no actual in game economy all it does is impact the personal experience. People seem keen to defend most of bungies decisions on loot (gear or materials) with the arguement that it some how effects the community at large and it doesn't.
PvE - A dude may have a max level gun that does 300 dmg and another may not but since everything is a bullet sponge anyways it's pretty irrelevant.
PvP - Crucible is stat capped anyways, iron banner may or may not be broken right now, or this is revealing the real flaw in what's going on with their stats and how they impact game play and at that juncture it would minimalize the impact made by maxed out weapons.
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