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The original concept of Spirit Link comes from WC3, as horde is balanced by having "AoE", Slow, Healing, while the other factions have "burst healing". Therefore, other factions could just focus fire horde units for an easy victory. With spirit link, the focus fire is distributed and horde's AoE healing is more effective.
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In this context, Spirit Link is balanced. And within the context of only Shaman healing, it's very easy to balance Spirit Link. But you're missing what happens when you introduce other healers into the mix.
Spirit Link works pretty good with AA and Chain Heal. But it works even better with Druid HoT - a Druid with Spirit Link can do the same healing at a better efficiency vs. Chain Heal, but he can then also spend half his time doing something else.
And it's out-of-bounds game-breaking with Binding Heal. Consider that with WotLK and level 70 spells/stats, Binding Heal can maintain ~6000 hps @ ~18 hpm. Compare that to Chain Heal's ~2500 hps @ ~12 hpm using the same assumptions. Chain Heal is the most efficient/highest volume heal Shaman get. It just so happens that Binding Heal is an incredibly potent heal within a very narrow context - and Spirit Link can perfectly map that context.
Now, do you really think that in an environment where people are throwing around that kind of healing volume that anyone is going to care much about the actual healing a Shaman does? Or is the Resto Shaman just going to be a Spirit Link-bot?