Originally Posted by Mercy
I'm sure the prices of the better gear would be adjusted accordingly.

I don't know, so I can't comment. I'll ask though.
Edit: The top ilvl available is 372. That's pretty high for free gear, don't you think?
No I do not think 372 gear is high at all for free gear. I mean "free" gear. Considering that Wrath servers get LichKing Normal drops I would expect the point shot for Cata to be drops from Dragon Soul Normal... or near that iLevel.

From a PVP perspective Vicious gear is 377 and bought on the AH. There is no point in spending points on an item that can be bought on the AH with less than 2k gold.