The dungeon definitely does not need to be nerfed. It's nice to have at least one 4-man that isn't completely faceroll for people in endgame gear.

The minimum item level is definitely way too low, however. I simply do not see an AF-geared healer succeeding in that dungeon unless they are extremely experienced with it. It should be closer to 60-65. It should also drop some better gear, like i65 or i70 stuff, instead of dropping the exact same crap you can get in AK, but that's another complaint.