Because the difficulty of 25man normals hasn't changed, and that of 10man normals has been brought up to 25man normals of wrath. Since that's when the term has been coined, and the difficulty hsan't changed, it's still relevant. If you feel they're harder, you either did content after it was nerfed, overgearing it, or on the old 10mans.
It's not a job, it's meant to be a game. Is progressing (although not as fast as heroic raiders) your character not fun to you? The game isn't meant for you. If you're replying to me with "why do you care casuals get that", I'll reply you "why do you care if your progression isn't as powerful given it's still progression"? You're still comparing to other people, just in the opposite way.
Also, I see 2 hours a week as a pretty extreme time schedule. Most people consider casuals people that play half a hour to a hour per day, on a not consistent schedule. And if you see 2 hours as a fine schedule, Heroic Scenarios are aimed just at that. It's not like you were going to do more than one dungeon per day on that schedule anyways.
Of course it was in Cataclysm if you exclude raiding. Heck, a random heroic took 10 minutes queue + 20 minutes for the actual dungeon (one per day as a casual), and in 30 runs you were pretty much decked out.
Running the previous raid then, nobody is forcing you into LFR. Don't have time to raid? You won't experience the content twice because you won't be raiding the new content either. People were avoiding raiding because those which didn't have a strict time schedule couldn't constantly attend them. Dragon Soul saw a MASSIVE increase in raid partecipation due to the introduction of LFR.
What's World of Warcraft? Official Battle.net. Of course they know, unless they randomly buy games without informing themselves. The difference between the words normal and massive multiplayer online is that one is a qualitative adjective meaning you can interpret it in various ways, while the second one is an exact definition. When you start going out of the subjective area and go into the objective area those conventions do serve a purpose.
Queues are battlegroup related. If you're getting bad queues, I'd blame it on the battlegroups population (which I do see as a problem, mind you) and not on the system using the queue itself. And we have always been there about providing time efficient rewards not being lucrative for developers.