"I really hope they can find a better balance. Playing with awesome people is super important to me, and seeing the awesome people wander off because they feel like they don't have a place in the game is just...saddening."

It's interesting that WoW's popularity is exactly what has given rise to the current conundrum. Previous MMOs like Everquest skewed towards the "hardcore, big time investment" model, but they didn't gather the following that Blizzard has. WoW started off very much like this and somehow it's playerbase got very large. Now they are attempting to balance multiple different playstyles and ideals. Don't kid yourself, there are more than two playstyles here. More than just "casual and hardcore."

Take me for example. I'm not really into the hard mode fights. Little bit TOO intense for my tastes. Yet, easily puggable instances tend to be too easy for me and end up quite boring. I'm in the middle. The current normal mode raids are actually very well tuned for my own playstyle. I don't want them nerfed because then my choice is between "easy and boring" or "hard and mind-numbing." Such is my opinion on the matter. :)

Other games come with more than one difficulty level. Starcraft II comes with 4 difficulties for single player mode. You could even consider online multiplayer a fifth and very different difficulty level. For current content in WoW, there is essentially only one difficulty level. Then when you beat that content, you unlock a harder mode. There's not a knob you can adjust before you play, like Starcraft or other games. The knob is only adjusted after you win or over time due to nerfs, gear increases and so on.

It's a very tricky situation to be in. I hope Blizzard can figure it out.