You have to choose your primary area of balance or you often end up with a mess (aka blizzard WoW balancing). Balancing for the top end usually trickles down to the low end. It's much easier to balance around what you CAN do, than around what your average pub does. If Icefrog balanced around the low end, then apparantly we need to buff QoP, Chen, Lone Druid, antimage, morphling, shadow demon, and wisp some more. Riki is the biggest pubstomper ever known to man in the trenches, do we need to nerf him? Fuck those elitist snobs and their buying dust and shit.
It's not by any means "a thing of the past," and I'm pleased with Icefrog's balancing around the highest level of play, and I hope he continues with that philosophy. Of course there are exceptions here and there (notably the PL nerf), but the majority of changes revolve around competitive dota and it makes for a much better game. I mean I want to say what's broken in competitive is broken in pub dota, but I can only say that for the highest level of pub dota. If icefrog didn't balance around competitive and balanced around the average pub, we'd have to go by the logic that you stated, "Well, Lone Druid is kind of super hard to play for your average player and so he loses a shit ton, more than he ideally should (50%), needs to be dumbed down and made easier or buffed to the point where he can win more often in pubs." The competitive balance would be: "Lone Druid is a monster in the right hands, is picked nearly every game and has been for two years, let's hit him with a slight nerf"--result: 300g bounty on Spirit Bear and an LD that is viable, but not over the top--even in the right hands. Tell me honestly, which would you prefer?
We're slowly getting to a point where close to the entire hero pool is competitively viable, and nearly every hero has clear cut counters. AP and pubs are by nature imbalanced, it's hard to balance around such a wide range of skill levels and an inherently broken mode--dota has always been a game of counters where picks and bans are as much a part of the game as the gameplay itself, and in pub AP you usually can't account for that.