The issue with this was it was intended to give a solid end game option for non-raiders/pvp players. It became the worst thing in a while because you couldn't use party finder and people wouldn't take/go with you unless you were in the highest gear possible. It became a way for raiders to gear up their alts and no one else was allowed.

It might have gone better if Blizzard put in an item sync in the system; that way your gear was less important.