Yet 5-mans, in many ways, are the heart of the game. They're where you cut your teeth on group mechanics and really learning your class. While there are many PuG horror stories, they can also be a place to meet new friends and prospective guild members. They're a nice way to get together and do something with friends in game that's a little less intensive than raiding but can be done with everyone on the same page more easily than trying to synchronize quests. I know I have quite a few great memories of doing 5-man dungeons with friends, myself.
The nice thing is, Ghostcrawler chimed in to say that things may have not fallen completely on deaf ears. They did stuff like making end-game raiding more accessible and segregating badge rewards so that raiders wouldn't feel like they were obligated to run 5-mans, he says, but in the process they may have made 5-mans too easy to graduate from, and thus they may want to strike a balance in the future.
I'd love to see 5-man progression more open-ended and rewarding in the future. Being able to work toward more badge gear and even cool cosmetic rewards like the Argent Tournament mounts and pets would be amazing, as would a wider variety of daily quests with interesting storylines (Something beyond kill me the boss and bring me this drop) and solid rewards that make them more enticing than the soloable dailies. Since it seems Blizzard has this idea in their heads, perhaps we'll see the first fruits of it in patch 3.2. I'd love to see more interesting daily quests or rewards come out of the 5-man Argent Coliseum and even out of other older dungeons that would inspire me to log on and run them again.