From Ghostcrawler:
Q u o t e:
Other theories I've heard include concern that Shaman were totally abandoning HW since LHW was so much more efficient with glyphs, crit.
This was the issue. It wasn't a healer niche problem at all. Shamans were just abandoning Healing Wave to cast Lesser Healing Wave since it was more efficient for procing Improved Water Shield, which felt weird.
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To reiterate, I actually don't mind altering the proc rate of IWS to be equal between HW and LHW. This seems a like a perfectly legitimate balance. What bugs me is the above quote.
As for the T7 4 pc bonus, you shouldn't just abandon it. I agree that the other pieces are generally better so long as you won't miss the bonus. However, if there is a fight where you are guaranteed to have chain heal as 50% or greater of your effective, you are better off with T7 x 4. What I was saying about crit and Chain heal before I should probably clarify:
Don't sacrifice haste, SP, Int, or MP5 for crit if you plan on Chain Healing your way to the top of a recount meter. Crit has a use but generally not for that spell. Larger CH's are fine, but not at the sacrifice of faster or more efficient.