Naxxramas

[Warlock]

I'd hardly call that a stupid decision. At release, the game had a whopping one large raid dungeon to the 3 five-person instances and 1 ten-person instance.

On top of that, before any of that raid content got released a new 5-man instance was released in the form of Dire Maul.

There was a long dry spell in which no new 5-man content were released, but frankly I don't see why releasing more would have been a good thing: there are already 4 fairly diverse 5-man instances with a wide range of equipment. Meanwhile Blizzard has recently been working on fleshing out their raid content with a pair of 20-man instances and a pair of 40-man instances. Raid content is just beginning to have any diversity at all - half a year ago your only option for raid instances was a pair of extremely linear raid dungeons with no quests. I'm very happy that they're starting offering some diversity, especially since now even many "casual" guilds are starting to move on from Molten Core now.
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Progression, progression, progression. Raiders outgrew MC and got BWL. They outgrew BWL and got AQ. They're about to outgrow AQ and get Naxx. If you've outgrown Scholo, you've outgrown BRS and Strath and DM as well.

I think Blizzard, or at least key designers, simply thought everyone would want to move on to raiding, that everyone who finished with Scholo would go to MC as a matter of course. To me releasing five instances in a row for one playstyle without catering to any others seems shortsighted.