I'm not sure if WoW could introduce real progression-oriented 5-man content without turning it into a "mandatory" extracurricular activity for raiders, which might be really frustrating for some people. Fundamentally, it's hard for WoW to support parallel gear progression paths at endgame. (Of course we have PvP and PvE paths already, but they've taken a long time to figure out how to make that work and it's still far from perfect.)
The best precedent I can think of is the lower-tier raids in classic and BC (ZG, AQ20, and ZA), which dropped lower-tier gear than current raids. Those worked pretty well in their day, but back then it was more common and more okay to be behind the raiding vanguard. If they were to introduce a Karazhan-5 in patch 5.3 which dropped 496 gear and was tuned for ~485 (so very easy for active tier 15 raiders, very difficult for fresh 90s, about right for people who've done some amount of LFR), I don't know if it would be popular.


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LFR ain't in the least exciting. It's just one more way to get gear.
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