I believe when they said that they were going to drop a lot more loot that what they were saying was 182+ gear. During the State of the Game, I believe the emphasis was that they agreed that all of the lower-end yellow gear dropping was very frustrating to them as well. 1.2 would bring more higher level gear drops in Challenge Modes, Incursions, Supply Drops, etc. So I think that the increase in the 182+ gear (I'm assuming 214 will be part of that as well since Broken Circle should be out for 1.2), then that should actually help fix the "economy" of gear. Most peoples' complaints right now revolve around doing a lot of work and only getting 163's for all that work. In theory, 1.2 will fix that.