By stemming the flow of leaving subscribers by implementing the casual features like pet battles and the farm, scenarios and the like they've ALSO NOW retained the ability to make really kick ass raids and features for the hard core. I still oppose the LFR aspect of it (but that's how they justify dipping that far into the budget to create such large raids) but here's hoping flex modes take off.
So... yeah. I agree.
The biggest dip in subs started with the dawn of Catacylsm. The supposedly hardcore friendly. (first patch)
And guess what. EVEN THE HARDCORE HATED IT! MONTHS of raiding just to reach the final boss and it wasn't fun, it was punishing, grueling. Barely 200 guilds had Sinestra (The hardest boss of the launch raids) down by the launch of the next raid. The atmosphere in servers dropped, the casuals who uphold the community sought their kicks elsewhere, and most of them either rolled alts and were 'away' from the fray, or just left outright due to seeing nothing at the peak for them to accomplish within reasonable means.
At end game you need more features. MORE things to do, whether that is casual OR hardcore. And as a hardcore (heroic raider, I suppose that qualifies me) I am still NO elitist. I know WoW needs all of it to survive. Pandaria offered all of that, hard and casual/fun for people to do.
They also stated quite alot that the 'free to play' model would be likely tested in Asia first if it came to that. Since alot of laws out there, require smaller increments of fees to play games like WoW due the the cult of 'internet cafe' players.
Oh and in response to the thread, I never left, but I feel like an IDIOT for not unsubbing during Cataclysm. The end game content was shameful. Pandaria feels like alot of love was poured into it and I would not be surprised if they gave up half way through Catacylsms development to make it.