If you want a game where normal mode drops the same gear as heroic, go play Swtor, and see how that's going. (Hint: Not very well)
Buy, yea, I've stopped doing LFR on my main, and do it on my alts if I find the time for it. I see myself as a casual.. as I log in only to raid, don't have that much more time to do anything in game.
The first time it's about the experience, the subsequent times it's about gear. If you remove the usefulness of the gear by lowering the stats, people will queue once or twice for the experience and then default back to doing heroics for gear. They will also not come on alts, as they experienced the raid on mains already and can get the gear easier in heroics. So yeah, lowering ilvl would kill LFR.
Of course it would.
Lot easier to put together your own 5 man and not have to deal with all the personalities...bad play...and randomness.
The better loot level is the reward for doing so...provided you actually win a roll...lol.
Yes, it would fail. Everyone knows ilvl is directly proportional to your penis size.
LFR currently provides a number of functions. Something for casuals to do, a way to get better gear, a way to see "raid content". If it keeps a chunk of people happy, it's good enough. The only thing left to "fix" is loot drama.