In some theoretical mathematical model I'm sure it does balance. In the real world it doesn't. The rate of acquisition is so piss poor and the gear itself is also often piss poor (helms with no meta sockets LAWL) that on no level is it equal to the reward rate you'd get out of say 4.3 heroics.
You forget the valor from that dungeon as well. The valor from that dungeon payed out in alot more and the aquisition rate has declined, hell you can't even get gear for it next patch NEVER MIND the justice points. It's slower much slower than it was in cataclysm and you can sit here in wilful denial about it or you can acknowledge it as the developers do. If it was actually as good as it was in cataclysm, say they made heroic scenarios REALLY pay out guess what behaviour would come back that the developers were trying to avoid? So no they can't pay out otherwise people would skip raiding especially these difficult bloated complicated bullshit bosses.
It doesn't matter if it's fun or not. According to the developers people will do something that mores effecient over something they decrie is fun. So they won't be going back to do older tiers and instead will do lfr. I'm not going back to do an older tier for shittier loot that'll just take longer. I also don't want to have to stomach the same god damn raid over and over again. I'd like an alternative that pays out as good as raiding, hell I'd take justice points that gave out last tiers gear. LFR not being enjoyable is exactly part of the raid model problem. You can't have raids without LFR anymore. If you want the raid model of end game progression to exist (especially with raids as big as ToT) then you are asking for lfr to exist. Sorry.
As a developer your primary goal is to entertain people in the hope they will continue to subscribe to your game and keep your pay cheque coming in. The genre is meaningless.
Bad ques are bad ques and it's an lfr problem. I had very good ques on the same server for dungeons. I never had an hour que for a dungeon in fact running on multiple servers I can tell you that LFR TAKES MUCH LONGER TO QUE FOR. I'm not saying LFR is the cause of long ques, I'm saying long ques are often a charichteristic of LFR making them not very casual friendly. You can blame the que system all day it doesn't matter. I got faster ques with dungeons then I did with lfr and dungeons payed out better. They were more casual friendly. Raiding in ANY FORM is far to time consuming and far to demanding to be casual friendly. Sorry. They've tried to dress that pig up as much as they could for casuals and it isn't fooling anybody.