I noticed this as I was getting into the upper 110s and gaining more items but until I came to the forums I didn't realize the scaling was by ilvl in addition to character level.
Now I'm 120 with around a 290 ilvl and where I used to be able to handle 4-6 mobs as a BM hunter with my pet now I am blowing defensive cooldowns on my pet (the damage reduction one and the one to bring him to 100% health) in addition to hitting mend pet on every cooldown just to handle 2-3 mobs.
The only solace I have is that it will hopefully get better when I hit a plateau, but unfortunately once I've gotten through the story content and unlocked Pathfinder part 1 I will probably pause my sub until 8.1 at least in the hopes that they equalize the experience at 120 a bit more.