You are wearing cloth... bye bye 5% intellect from Leather Mastery.
As for HIT, according to WrathCalcs it actually isn't the highest priority stat. While it is a relatively high priority stat, even sub hit capped Intellect, Spellpower, and possably Haste will likely be more valuable than it. Spirit IS Hit for Balance. You should actually be using Spirit to reach the Hit Cap. Other than Trinkets, Rings, Cloaks, and Necks, you should have Spirit on your leather pieces to get your Hit Cap. This is because the Balance of Power talent converts 100% of your bonus spirit into Spell Hit Rating. Spirit IS ALWAYS better than Hit and there is a logical reason to this. Spirit increases your out of combat regen, meaning between pulls you have to drink less often. While it doesn't increase your combat regen the fact that it provides any benefit besides just Hit means it is always better than Hit. The only reason you would ever intentionally get Hit Rating is if you are reforging an item that already has Spirit on it to get more Hit Rating like you did with your Belt. Part of your problem right now is you are working on the wrong number, Spirit IS Hit.
As a general guideline for stats...
Intellect > Spellpower > Spirit/Hit (to Hit Cap) > Haste > Crit > Mastery
Here a little fun fact for you...
Restoration's stat priorities are...
Intellect > Spellpower > Spirit > Haste > Crit > Mastery
Now when I look at your character profile and it says average item level of 349, and your current average item level equiped is only 340, that tells me you probably have better gear in your other spec (or just have garbage sitting in your bags inflating the value). Since Balance and Restoration stat priorities are virtually identical, if you have a better piece you use for Restoration, it can almost always be used in your Balance set. The general exception to this rule is often trinkets which may only proc off of one type of spell.
Spec.
Why are you speced into Blessing of the Grove? Sure there are fights that involve movement at certain times, but you are hardly Moonfire Spamming enough with Lunar Shower active to require that. Earlier on those points are better spent in Moonglow or Furor as your mana pool is very insufficient right now. Speccing into Dreamstate is the highest level of efficiency you can get if you are innervating yourself all the time, however if you are forced into innervating others which you will likely be required to do so in a raiding group, those points would be better spent in Furor or Moonglow to provide you with a benefit all the time.
Your glyph selection is fine. Right now it's kinda a wash between Glyph of Wrath or Glyph of Starsurge for the third Prime Glyph though Glyph of Wrath will be better after the 4.0.6 patch.
You're exhalted with Baradin's Wardens, but only Friendly with Wildhammer Clan and you are wearing the Ramkahen talbard... wow. Wildhammer has... a 346 Ring at Revered, and a 359 Neck and Belt at Exhalted for leather casters. Not to mention a 333 Shoulder at Honored which would also be an upgrade for you. Ramkahen has... a 333 Ring at Honored for casters... that's it. I guess you really want a Camel to up your DPS? You're reputation priorities are really messed up right now. Right now your top priority should be Wildhammer and your Second priority after that would be Therazene which will give you another 346 ring at Revered and the better shoulder enchant at Exhalted.
Your professions are a bit neglected as well. You need to work on that Enchanting and at least capitalize on the benefit of the ring enchants your profession provided. And you enchanted your cloak with Spell Penetation? Really? You see Spell Penetration anywhere in that list of priorities? It's not cause Spell Penetration is primarily a PvP stat.
"In anything, if you want to go from just a beginner to a pro, you need a montage." /w TankSpot WTB Montage for Raiders.
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