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Long story short - I like instance leveling. From what I've seen, the loot tables off of the bosses in Northrend are awful. Of course, that assumes WoWWiki is accurate. If the loot tables are truly as poor as that, should I gear up in Outland level 70 instances (this is on my mixed group)? Or are the quest rewards good enough to handle the instances? They're pretty iffy from what I've seen on my Priest/Lock group, but that's because I wasn't looking for the same gear I will be this time around.
I like instance leveling too.
Thus far in Northrend, I've been a quester. Period. The simple economics for me are worth the up and down nature of exp rates through questing. I'm getting a ton of cash from quest rewards. It seems every third quest offers gear. Rarely is it an upgrade, but its usually a few gold across four toons (my fifth DE's everything).
Instance drops look like crap, so if you are set on instance leveling, I'd use WoWHead or some other site to spot out a few quest chains you can do to gear your guys. Starting zones both have you geared up quick, and you can probably jump out of instances every few levels to try and get slight upgrades in gear (if needed).