Since I've been playing (the very beginning of TBC), Blizzard has NEVER updated a holiday twice during an expansion. I still remember when Midsummer Festival started in WotLK, Ahune still dropped level 70 loot. I was soloing him on my druid and bringing in alts so they could get the gear and scythe. If anything, Blizzard is slow to update holidays.
You'll never see Blizzard upgrade a holiday at the start of an expansion and then upgrade it again toward the end. They may add an item like a BoE or a mount, but they won't suddenly upgrade the rest of the loot. The past is a pretty good predictor of the future so those thinking Blizzard would upgrade the loot from 346 to 378 were setting themselves up for disappointment. They won't upgrade Love is in the Air again until next year with MoP.
Expect Ahune to drop the same loot as last year for Midsummer's Festival, too. They may add a pet or new enchant, but his loot will be the same otherwise. I doubt MoP will be out before then to warrant an upgraded loot list, but even if it was, Blizzard would skip upgrading it saying it was a time constraint, then force us to wait until 2013 to get level 90 loot from Ahune.

MMO-Champion
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