The loot that drops out of flashpoints and hardmodes, although much more appropriate now than when the game first launched, is woefully low.
With the current level of gear, I think it would be much more appropriate for someone to be able to get their full set of Rakata armor (not weapon or offhand though) from Hardmode Flashpoints alone.
Particularly with how difficult Lost Island is. I would much rather do a hardmode EV or KP for one week than ever go to Lost Island in full Columi.
Gear progression outside of operations is stagnant and in no way able to prepare someone to participate in the harder raiding content.
Note: I say this as someone who weekly clears all the way up to Hardmode TFB on a weekly basis. We seem to be making great progress in NiM EC too.
While I agree that Gear progression outside operations is stagnant, these flashpoints aren't really tuned to need anything near the drops that you get out of them and too many things drop Rakata to begin with (6 OPs drop Rakata now). Honestly, if these were to drop Rakata, Bioware may as well remove 56 mod gear from the game.
I think a better answer would be to add more tier 2 FPs and allow THOSE to drop Rakata.