Kinda torn apart on this one.
On one side, LFR is a godsend for people that can't raid. Without LFR, those people would NOT SEE THE CONTENT. End of story. If you have a family and heavily occupying job, you simply CANNOT RAID in a typical guild environment, where you have to be available for a set time period and you have to exhibit a certain % attendcence rate. This happens regardless whether you're a total scrub or ex-Method player. If you can't realibly commit to a scheduled raiding, LFR allows you to see what Blizzard has created. Without it, you wouldn't be able to unless you bought a boost.
On the other hand, LFR isn't really raiding and isn't representative of what this content really is.
What I would make instad, would be SOLO LFR with multiple difficulty options. Maybe just two: normal and heroic. The raid would look exactly the same, but instead of players you would have NPC's helping you. You would choose your role and job for each encounter (or be assigned the job randomly: for example on Archimonde you would need to DPS shadowy things in P3 etc) and the bosses would normally drop loot. The difficulty could be tuned similarly to normal and heroic raids. Loot quality would be slighly lower than corresponding "standard" raids due to their accesibility and no group requirement. Say if regular Normal drops 700 gear, this solo version would drop 690. Heroic diffulty solo raid would still be better than normal raid of any type.
This way you could have meaningful and hard solo content that can be done at any time, without too much watering down actual raiding.