Personally I don't mind crafting drops coming from dungeons. I'd rather see that than some needless grind elsewhere as a form to obtain them.

As for the iLvL drops in dungeons, there's nothing wrong with that. Pushing it to iLvL 105 would instantly nullify the point of the soldiery tomes which the same dungeons give. As those grant access to iLvL 100 gear which may be upped to iLvL 110 with sands and oils. Asides from that, it would also make dungeons real easy, real fast. With pugs these dungeons actually pose a bit of a challenge to them again. It is clearly apparent. If they screw up, due to the lower gear they'll very rapidly die.

I went in with an FC group last night though as iLvL 110 monk, and I could simply ignore any form of tactic in snowcloak. I would have sufficient hp left. Things simply became the usual cake walk again. These dungeons aren't aimed at posing a challenge at the higher iLvL's. So beneficial for the experience is going by it the way it's now. For those who rapidly want to obtain higher iLvL gear, there's always SCoB which can be farmed these days for pieces.