If they choose to improve the loot rather than the instance itself then they really have given up giving a damn. Why not just cut out the middle man and give people a random item of loot for each day of their subscription that way there's no effort involved and blizzard still get some pennies.
Well, the official reason they've given is the same one as why they apparently can't modify Culling of Strat to have a "skip the intro chatter" option like they put into ToC5: apparently it'd require a near-total remake of the instances in question to do compared to the easy quick-fix of being able to skip ToC5's intro, and they're more interested in spending time on making new stuff (read: Cataclysm), and in the subtext, they're too cheap to spend any more of their vast wealth than they have to.
I think they're also a tad defensive about the Oculus, as they tried something new and thought it was fun, and don't want to cave in to people's annoyance/hatred/whatever for it, which on some levels I can understand, but I mostly see as a somewhat silly decision.
To be honest, I don't overly mind.. what I want them to change the most is to get the hell on with making the speech at the Deathbringer Saurfang encounter skippable after the first attempt. Yes, I like lore. Yes, Saurfang is awesome, and his son was alright for someone who got owned in a cutscene. But good grief, once is enough considering the length of the intro!