Sorry, it's time to put this argument to bed.
You think a single person bought or resubscribed to an MMO because someone got items with purple names for their electronic paper dolly? Honest to God, you think someone who sees a game on the Gamestop shelves goes "I know this game! That's what Ensidia and Exodus play and they're my heroes!" ? ...seriously? That's the distilled essence of the "hardcores attract casuals" argument, and it's become the dogmatic mantra of WoW's "raid focused" expansion design.
Bull fucking shit. If you know who one "hardcore" player is, you're already subscribed.
People who bought WoW didn't spare a single thought for endgame, raids, PVP, or items. They didn't care if classes were well balanced. They didn't care if talent trees had 6 points or 40. They saw it and thought "this sounds like fun." They started playing because it looked interesting. They kept on because it kept feeling fun.
People play games for escapism. They do it for amusement. If tedium outweighs fun, people stop playing.
I think this is why subscriptions are dropping: There are two huge places where the fun stops. One is the gear grind from fresh level 90 through LFR, dailies then heroics then 5.0 LFR then more dailies on Quel'danas -- ooops, that's Quel'danas Marsh, I swear it's not the same zone. The other is the entire pre-BC leveling experience, 1 to 60. Every zone was rewritten as one agonizingly long quest, and it goes on and on and on and on ad infinitum, 15 hours later you still aren't done. In an age where games cater to 5 minute attention spans, and most people can't even follow one "Game of Thrones" episode, who has the time for that?
Incidentally, there's exactly one accepted definition of "casual gamer", anywhere online, no matter whom you ask. "Casual" means "one who puts less effort into the games I'm playing than myself". No matter who you ask, that's what they're telling you. That's what they really mean. So even invoking that term invalidates an argument.