They aren't rewarding you for "almost being good enough to win." They're rewarding you for nearly matching another group of player's skills but ultimately losing. It's incentive to keep trying when you're on a losing streak.
Soothing Mist:"Healing them for a minor amount every 0.5 sec, until you take any other action."
Jade Serpent Statue: "The statue will also begin casting Soothing Mist on your target. healing for 50% as much as yours. "
[What's half of minor?]
"Statue casts Soothing Mist at a nearby ally for toddler healing."
It would be frustrating to not get at least something out of it, when you're losing.
That's ridiculous. Defeat should have no reward associated with it.
Blackrock Foundry was probably the best part of WOD, but that's really just a blackhanded compliment.