I agree that they should add another difficulty level. I like the difficulty of the current encounters but as plenty have said there are certain players who would definitely make use of an easier mode. There is plenty of people who obviously aren't up to the average player for whatever reason, or even people who have a 10m team full of family friends and they want to play whatever class they want and they're group make up is horrible. Why tell these people to either get better or go home, doesn't achieve anything. Adding a difficulty in between LFR and normal wont affect anyone except for the people who would actually enjoy it. It would simply be a toned down version of Normal mode, same mechanics just not as punishing.
And it wouldn't be called easy mode. I would think make it go as follows, LFR - Normal - Elite - Heroic, where elite is the current normal mode. At the beginning of a tier you can start on either normal or elite with heroic being reserved for completion of elite mode, same as current. There really is no reason not to do this, it would be easy to balance since it's just a toned down version of normal and if we use current gear as a example the new gear would be 512 ilvl.