I'm on the side of welfare in any form being generally bad for progression and in this case its bad for the game - any source of gear that is antisocial and doesn't require interacting with other players giving heroic raid quality loot is a failure to incentivize players to actually experience the game as originally intended. Every slot of gear the casual gets handed to them at the quality of organized content is another whisper in their mind about not caring about trying to coordinate with other players and thus get engrossed in the social aspect that keeps people subscribed way more than all the artificial grinds.
And to post an update to this, it is still Normal loot as this week (Jan 28 - Feb 4), it is Warlords Timewalking.
Confirmed, only rewards 445+ normal raid loot cache, not heroic cache.
This isn't even true. I just got a 445.