Yea true it isn't.
But what about cases like the lvl7 house D series? lvl7 (9) bargain of blood elite is obvious a joke to epic characters, yet it rewards FAR more favor then Epic C/N/H?
Doesn't make any sense to encourage epic level players to run a lvl7 quest to get a far better reward then a lvl~21/22/23 one.
Unrelated but also a major problem:
The easiest version of Epic Lord of Blades (EN) currently drops the ultimate rewards: Tier 3 spirits/tier2 frags. However, to most new/ungeared players they are useless to them, as you cant use them tell you hvae the tier1 and 2 spirits. The 2s drop on EH, which is also fairly easy, so they might get them. But the Tier1s only drop on heroic normal/hard.. Which as you said - no one runs. So it essentially completely prevents new players from acquireing alchemical. A pretty messed up system.
Related thread here:
http://forums.ddo.com/showthread.php?p=4642325
Keep replying here though and with enough support from the community turbine might respond (again) and finally implement the system they originally planned to.