I think we all knew that this spot would be nerfed. It wasn't really a question of "if" it would be nerfed but "when".
Redditor beepbeep75 posted the news on /r/WoWGoldMaking. I've since been there myself and can confirm the nerf.
"Today I went to Zhu's watch and the mobs in the phased out part of the Zhu's Despair quest gave only 200xp and they are no longer lootable, they just die and lie there."
While I am a bit sad to see this spot get nerfed it's not much of a surprise.
Also, as much as I'd like to take credit for publicizing the area (and therefore getting it nerfed) it is much more likely that it was was all the players and bots that likely farmed the spot non-stop that ultimately got Blizzard's attention.
Easy come. Easy go.
Like this post? Get even more Power Word: Gold - Purchase our 100-Page Illustrated Gold Guide, subscribe via RSS, subscribe to the Podcast via iTunes or RSS, watch our Livestreams, follow us on Twitter, Circle us on Google+, Like us on Facebook, subscribe via Youtube and join us on reddit.