We all know LFR is a hot topic latly. From the information i have gathered through these forums and other sources it appears people hate the fack that they are "forced" to do LFR to stay competitive. Why not redesign raiding similar to the new challenge mode dungeons. Gear scaling to difficulty.
One tier of loot. So how I see it is LFG style raiding is the only raid that drops gear. Normals, like challange modes, offers the differnet color set pieces maybe some subtle improvements (sparkles and other stuff similar) and some titles. Heroic offers the same as normal, different colored set, titles and with the addition to mounts.
The hardcore raiders don't have to clear so many instances they are forced to clear and casuals still get loot. This is coming from the perception that the hardcore raiders just raid for the challenge not for the better loot.