Personally I feel LFR -> Flex -> Heroic is a much better idea, but really, if they want to cover "all skill levels" then they should just create a "Monster Power" system and be done with it.
i.e. You get one Lockout per week, and you can adjust been LFR/Normal/Heroic on a per boss basis. Solves the problem really, and make them all "flex" starting at 8 players (not 10) for small guilds. Problem solved.