At this stage of WotLK, you could purchase iLV 200 Titansteel gear, and you could get iLV 213 or so from Naxx raids.

Heroics dropped iLV 200 gear and badges which were used for iLV 200 gear.

By the end of WotLK, you could purchase some iLV 264 gear, and heroics were still balanced against a team in a mix of iLV 187-200 gear.