However, for me this was completely expected occurrence.
I wrote in several older threads of mine that the loot does not behave as advertised. I saw this coming with the release of 1.05, because it happened with 1.04. In both patches the same thing occurred. The first few days i used to get crazy amount of set and legendary items, then throughout the lifespan of the patch (if i could call it like that) the legendary drop gradually decreased more and more.
I got level 61 Paragon DH, level 14 Paragon Barbarian and level 10 Paragon Witch Doctor.
Talking specifically from my DH experience.
During 1.04 i went from paragon 0 (correct me if i am wrong, but that was the patch which actually introduced the Paragon System) to like 40 or so paragon, yet that didn't seem to have any effect on the loot. The loot dropped like crazy at the start of the patch, even though i was very low level Paragon, and throughout the lifespan of the patch it progressively decreased to the point that almost nothing was dropping close to the end, even though my Paragon level had increased significantly.
Now we get to observe the same thing all over again. At the start of 1.05 i was getting like 10+ legendary items a day. 21 Paragon levels later (currently 61) i get less, and less, and less.
I often talk to players who have over level 70 Paragon characters, they all describe the same exact phenomenon.
This pattern is blindingly obvious to me and reasoning why the system behaves like this is also blindingly obvious. Each and every patch Blizzard introduce certain amount of legendary items into the economy, then throughout the lifespan of said patch they gradually reduce the drops, so that the players actually have to compete for the remaining items on the action house. When the loot becomes more scarce the players are willing to pay more and therefore bid a lot more on the items.
It's a very effective gold slink that has a very simple purpose: to get as much gold out of the economy, so at the start of the next patch people are more willing to buy more gold from the RMAH.
Call me a conspiracy theorist, but if you can't see the pattern, then you are as blind as a bat...