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In a perfect world they wouldn't have to nerf instances whatsoever. Back in vanilla WoW when the top guilds beat BWL I'm sure most casuals that still couldn't beat Rag thought they'd never ever beat Nefarion. This turned out to be incorrect as given enough time, many of those same guilds progressed through at their own pace without such grand sweeping nerfs to do it.
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BWL was nerfed a lot. I don't remember everything but the Orcs on Razorgore had much less HP, Vaelastrasz had less HP and some of these three dragons got also changed quite a bit.
I can see completly the point in competition, but isn't competition against casual guilds a bit lame ? I mean feeling Elite because an organized guild with experienced players can down bosses a casual guild cannot - so what ? Time based competition among raiding guilds sounds a lot more fun to me. Because of that the idea is to only give titles to this very few guilds that can down the end bosss in a very short time.