Basically this subject has been beat to death, yet SE fails to do anything about it and this is for 1 reason. There will be no more dungeons until 2.0. They are most likely doing this to have content stack up over the course of the summer until 2.0's release. Though I agree with this general concept, I do not agree with how they are going about it.
In my opinion instead of make horrid drops, just restrict the number of times a person can complete a dungeon in a 24 hour time period and improve the drop rates. Currently with the body drops being at ~1% per chest this means that getting a specific body drop from that chest is ~0.5% chance. Grinding the same instance over and over like this is and never will be fun unless definite progress is being made. I remember in FFXI Salvage was the big thing people complained about with drops, but if I remember correctly the main item that would never really drop was the Phobo's Cuirass which had a 6.7% drop rate according to the wikia. I have seen lower drop rates, but never something as low as ~1%.
SE, for the sake of your game I strongly suggest that you fix this system. It seems that for completing Garuda you made a predetermined number of wins to get a weapon, so please now do this with the dungeons.