And the game should balance the drop base on its majority rather than a few elite runners.
No, the game should drop what is appropriate for the intended gear level that the content was designed for. The content was *designed* such that it can be completed by a group in Tionese if executed exactly as intended. The fact that most people *can't* execute the content exactly as intended (interrupting asap, killing adds asap, not standing in bad stuff, blowing CDs to survive burst damage phases) and have to overgear it because they've got poor execution has no bearing upon what the drops should be.
The difficulty of HM LI is completely separate from the gear requirements. It requires a reasonably skilled *player* behind the keyboard, not just a keyboard smasher with a well geared character. Tweaking the gear rewards won't make people more likely to do it (most people will *still* wipe continually when they're first learning it while the people that already know it will still just laugh their way through), and it would only screw up the existing progression that's *already* been heavily compressed by the addition and prevalence of BH comms and is getting compressed even more with 1.6 providing full Tionese to every 50 immediately.