If you're going to quit WoW because you can't deck your character out in BiS before the tier is done, then you have missed the point of the game and might as well quit.
Like was said above, gear is a tool you use to help you kill bosses. It's important but skill and coordination are considerably more important. There are very, very few players for whom gear is the only or even the most fruitful avenue for improvement.
Someone correct me if I'm wrong, but I'm pretty sure they will have upgrades this tier. They just won't be implemented until 5.3 patch. That's how I understood it to work.
Yeah, what they said is it that the upgrade guy will most likely be returning in 5.3. Meaning there is a chance they will never bring it back, as they weren't entirely sure it was here to stay based on feedback. I'm frankly torn, but IMO, the thunderforge thing kind of does the same thing but in a different way that obviously has more RNG.
OT: Not really. As a raider, it's kind of nice to have LFR as a backup lockout to get lesser versions of gear, especially when it comes to completing 4 pieces and getting really OP trinkets that just don't want to drop that are still pretty decent even at a lower ilvl. Also, generally loot looks more badass the harder the difficulty it comes from, and often times now some heroic pieces have extra particle effects and things, for what it's worth. Of course everyone is transmogging and that doesn't matter so much anymore, but nonetheless, it's there.
As for the increasing ilvl, they have it planned out, for the rest of MoP at least. The whole purpose of gear is to progress on current content, and if you're in a guild farming 16 heroic bosses for example, the gear isn't going to waste, it's only going to make entry into the next tier easier and some pieces will last awhile depending on loot drop RNG etc. It would be OP if the gear we acquire in t14 was good enough to clear the entirely of t15 and would take all the fun out of raiding for most players. Getting new gear is fun, and no matter how long I waited or how hard I worked for a specific piece of gear, I've never not been happy to replace it with a better piece, and this is nothing new. We should feel more powerful as the expansion goes on, it's always worked this way and really the only difference is the numbers are quite big.