There will be more dungeons and raids added with later patches where you will need that gear - so you can get even better gear for the next set of dungeons and raids.
It is only true for some MMOs that the "real" game starts at level cap. For others, like FFXIV, it is the road to level cap that is the real game - the "end game" here is mostly filler content to keep players busy with the gear treadmill until more story can be written and added. Still, many players seem to enjoy running the dungeons over and over.
As for challenging content - that is what the Savage and Ultimate versions of raids are there for.



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