"can" is a powerful word. They surely can but it would make the game completely ridiculous at low levels and we would get the same problem after few more expansions. That's also one of the reasons they have to get rid of exponentiality. Currently lvl 1 crits for ~50, a lvl 90 with bis gear and raidbuffs are critting like 500k-1m+ depending on loads of things. Even if they made lvl1 base to 1 damage and crit 2 it would still get rather high on next expansion.
I understand math just fine. Someone just needs to practise on reading. People keep on using "scale" when they are NOT going to scale it down. Item squish is not about dividing everything with xx multiplier. They are getting rid the exponentiality which isn't done by dividing. I would suggest reading the original thread http://www.mmo-champion.com/content/...29-of-Pandaria again. Just to quote using Blizzards own example pictures.
It's not a dividing downscale. GC also said they have tried downscaling and it felt really wrong. That's why giving buffs is the only way to "fix" raid soloing. It doesn't fix a plethora of other problems. There's no absolute right way to fix it or they would have done it already. No matter what it will be artificial and feel really awkward and the game will suffer because of it. As a programmer I do understand the need but what I'm saying is that it IS a serious problem that can't be easily solved.