I can agree to it being lower Ilevel legendary but Normal mode raiders should be lower than heroic and heroic at the highest. I don't think many LFR players (purely LFR) will have it compared to Normal and heroic raiders. Heroic raiders will be a very high percentage to have the cloak (min max etc) compared to normal and LFR raiders going by the way people in Heroic prepare for raids.
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He's quite correct a lot of guilds I know of simply gave a legendary if it dropped to a favoured person in guild. I had a shaman who was a terrible player but was always online and in raid (and a really nice guy) he was due to get the eye from rag in MC if it dropped. TBC one of our rogues got the glaives as he had most DKP that was the only reason he got it.
As for your other part of the post, you just described this cloak. the only reason you whine is because its not restricted to Heroic/Normal only. Thats it.