Imagine if they hadn't have upgraded the gear from those 2. There would have been a decent negative response to that. So, yea, updating the drops to be a bit more "current" shouldn't even be a question. It is kind of sad, though. The Timeless isle comes out, and bam, all those 470 ilvl drops becomes obsolete except for the rare vanity stuff.
With that being said, blizz SHOULD add something each time the holiday is out. Sure, there was the brew-backpack the previous brewfest, but that was it.
Of course, blizzard is fulfilling the precedence they have set for themselves for the holidays- toss a bone every now and then to keep players in it. Having the same brewfest stein almost 4 years in a row told me that they really could care less about keeping the holidays engaging for all players.
Eh. With that being said, blizz IS adding another something to the christmas update- a new pet and mount by the looks of it.