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The problem isn't that Blizzard didn't just hire ex-EQ raiders to drive the game's development. It's that they hired the specific breed of ex-EQ raider who is at least as concerned, if not moreso, with what content and rewards OTHER people have access to, and not just what they themselves are doing.

Which is why PvE gear allows a small subset of players to absolutely dominate an entirely different aspect of the game. It's also why crafting is such a joke, and why non-raid itemization was so pathetic versus raid itemization. It's why they poured god knows how much time and money into designing content (Naxx) that only 3% of players have made any real use of.

Content and reward exclusivity in an MMO isn't a bad thing is an of itself. When development is driven by the mindset that only a certain, favored group should EVER be rewarded, like WoW has been for the past 2 years, then that exclusivity becomes a liability. It's OK for PvP to be dominated by catasses in Tier 3, because the "right" people on the development team don't want PvP'ers to aquire equal or better rewards outside of what they consider to be the "best" MMO playstyle, or to be competitive with catass raiders. In their minds, the top raiders should be at the top of every aspect in the game, not just PvE raiding.