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Are you saying that this system is badly thought out because instead of this progression it could be solo->5 man->5 man->5 man if you wanted it to be, and that you aren't "forced" to move on to 10 man and 25 man content if you don't want to?
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Yes, I think each player have to realise that he has nothing to do in current tier (5 mans) so actually all (or almost all) players were "forced" into 10/25 mans (Aiming for new gear or prestige). My common sense tells me that average player won't bother with getting on next stage as he has warm place at 5 mans. And quitting WoW is more possible than getting to next level, when this player will get fed up with content.
Keep in mind natural burnout of any player, at this moment there's 3 ways a) Jumping on next stage of game b) Leaving WoW c) Starting new main
And I think with 5man> 5man > 5man progression % of leaving "Because I've seen everything" will increase.
Current 5 man to prepare for 10 man, 10 man to prepare for 25 man, 25 man to prepare for fresh content is working, As 5 man just cannot give enough efforts absorption as large and hard raids wich ideal to keep players busy.
I may be wrong as casual player psychology is a dark side for me.