Yes HM LI is a bit silly, considering that flashpoints are the bread and butter for casual players making it inaccessible to many causuals (due to skill & gear requirements) sort of defeats the purpose.
Dont consider HM LI as a flashpoint, it's basicly a mini raid for all the players who QQ'd in the first 3 months about how easy the game was. I agree if BW continue down this path it will hurt them in the back pocket, but if your willing to learn and go back week after week then eventually you will succeed in completing this flashpoint. HM LI is a gear & skill check, both which will improve over time if you have the patience and desire to complete it.
Casuals can do the story mode and still experience all the same content as everyone else.