In a lot of cases, the top (the tippy-top, the #1) team in a bracket is receiving the title of Duelist, when they should be getting Brutal Gladiator and their Netherdrake pets. Players with a rating of 2100 or higher are earning only the Challenger title in some cases, and I think it's very, very safe to say that those players would be in a bracket higher than just the top 35%. Season 4 is not exactly known for having a glut of people nearing the 2200 needed for shoulders.
This is definitely an issue we'll have to keep our eyes on, because it is a rather serious issue as far as WoW goes. Say what you will about the arena, but botching the rewards for something that stretched for months and is a one-time-only opportunity is a pretty big deal. The players that came out on top after all of that (cheesy comp or not) really do deserves their rewards, and failing to follow through is not the way to encourage people to keep playing.
I have no doubt it will be cleared up, but it'll be interesting to see what they'll need to do to fix it. Did their snapshot of Season 4 prior to Patch 3.0.2's launch not work as intended? Did they push the blue button instead of the red button? We'll find out eventually, I'm sure!