I find it rather mind-boggling that the idea of competitiveness coming from blue posts can't get beyond getting realm/world firsts. For one thing, there are lots of things people would probably consider as 'realm firsts' that aren't recognised as such. For example, the vast majority of world/realm first kills are going to come from hardcore guilds running 16-20+ hours per week. Guilds running 2 or 3 3-4 hour raids per week may well consider themselves in a separate bracket with others with similar time limits.
By this definition, I should be able to walk up to Lionel Messi, Kobe Bryant, Sebastian Vettel, Roger Federer... (you get the idea, I guess) and tell them I'm being super competitive in their respective sports because I'm competing in a local league putting a fraction of the time they are. The thing is, when looking at the grand scheme, I'm not. Not even close. There's a reason why the world first quality guilds usually get world firsts, and it's not just skill, there's also commitment, coordination and a myriad of factors.
Of course, if we start removing factors that we can't or don't want to meet, even playing rock-paper-scissors with your friend on the middle of Times Square is competitive, but the moment the discussion goes down that path, it's very unlikely we'll reach any kind of agreement on what's being discussed.
However, for people with less ability to perform DPS/other roles, it makes no doubt to me that they are indeed having trouble on enrage timers and such, or at the very least be close enough that they'll absolutely want any possible upgrade.
When we raided during the first week with raids full of 463~ ilvl geared characters enrage timers felt quite tight, and we're a world-class guild. I can safely assume that a raid of players that perform sub-par, despite their much higher ilvl, will not be dishing out much more DPS/healing than our raids back in 463 gear, and will probably encounter a lot of trouble with enrage timers or other numbers-related issues rather than mechanics issues.
Isn't this another reason why it'd do good to those players that feel they need the gear to instead improve their dps rotations, talents, gearing choices, etc, so that they can make the most benefit of their class rather than relying on getting higher gear? (I'm talking about those encounters that aren't dps checks, of course, at some point the developers expect the raid to be at a certain treshold of gear, and if that's not the case it's very likely you just won't be able to move forward until you get more upgrades)
Of course, not everyone can play at the 100% of their spec, but the jump those players may see from wearing all 463 to 476 compared to the jump from perfecting their rotations (working on them, or whichever area they might be failing in) would probably yield a greater result, and one that will outlast gear replacements in the long run; you're not likely to lose skill once you've acquired it after all.