I kinda agree with the OP. Personally I think organized raiding is an obsolete and dying model. People still do it sure, but only out of necessity/habit.
With that said, LFR is just too easy. I think FF14 does it best. You have two difficulties, Normal and Savage. Normal is puggable and isn't overly difficult but does require people to actually have to play reasonably well. Savage is probably closer to Heroic/Mythic(never done it myself so can't say exactly how hard).
WoW should adopt the same model. Normal and Heroic. Make Normal somewhere between where Normal and Heroic is now and make Heroic somewhere between current Heroic and Mythic. And keep them on the same raid ID so the "Heroic" raiders don't feel obligated to have to do both.