Actually not correct there is a group feature with the ability to say your lfg, it puts an icon over your head, adds you to a list everyone can see, and allows you to add a comment. Actually more features than WOW pre-lfd.
Problem is, same as WOW, people tend not to invest the effort in using it. WOW players post LFD completely changed, and new players were totally unaware of the actual MMO experience pre-LFD. Pre-LFD, yes a group could be difficult at first. But here's what happened and the reason the game is designed the way it is.
Say you want a dungeon and you have no friends or guild. Use chat. You will get a group. Be nice, talk to your group as you travel, yes travel was part of the game and the experience. "Hey where you guys from?" "You like your class?" "I'm new how long you guys playing?" You get to the dungeon having already been chatting. Communication and attitude are much improved. People are trying to build relationships and a reputation on the server, so they can group easier and not be known as a jerk. Group completes dungeon. Dungeon actually goes pretty well, and even if it doesn't people are nicer cause groups are precious and so is your rep, bailing is much less common and so is smack talk. You finish, add to friends, ask about their guild. Doing this I built up friends, people I knew well, their family, job, illnesses, personal connections that lasted years. Leveled with them, raided with them, pvp's with them. Groups became easy. Join a guild, grow your rep even more. Log on, people spam you for groups.
Post LFD - click button, get group, port, who are these ppl, who cares. wipe, people cussing, rage quitting, maybe complete dungeon. Devs nerf because no one works together and hate each other. Game is stupid easy. Friends list shrinks because no one cares. People quit game, drop guilds, who needs it? You log, on, no one cares they are all cross server running dungeons with strangers rolling need on their gear and dropping group. Now devs try to implement *** proof rolling system. It fails for many classes. People could care less who you are. That name you picked? No one cares your a gearscore not a player or a person. Devs try try to make guilds more attractive with incentives, because no one cares about their guild or other players anymore. Devs literally change your name to a number for cross server grouping. Welcome to modern WOW and LFD.