if people doing it on easy mode can never get what drops form the hard mode version I am completely fine with this method for everything.

I honestly think players have been spoiled by scalable content in WoW and the clones, it does not exist anywhere outside mmos for the most part with a few exceptions here and there. But to make everyone happy, as long as the drops are segregated where easy mode can never get good endgame gear I am all for it.