Bear in mind that the above quote was for the planned squish at the start of MoP. Simply add 90 to the list of levels and change "Mists of Pandaria" to the next expansion and it's a valid idea for the start of next expac.With that in mind, we could go back and compress the big item level increases that occur at level 60, 70, 80 and 85. The Mists of Pandaria gear would still grow exponentially from patch to patch, but the baselines would be a lot lower.
They could very well change their minds on what to do, but that idea makes a lot of sense for what they plan to do (WAY more than a % reduction, anything below like 50-60% would be overcome within a tier or two).
That it isn't required reading before posting in item squish threads is a little annoying. Would love it to get rid of all of the "they'll just reduce everything by x%!" lunacy.