Yeah it is, although my beef with the chest being sold is this: That means that not only can those who didn't buy the expansion get all the weapons that are upgraded, including DLC exotics. But now even without having to pay for the DLC they can reach level 32 as well. I was kind of under the impression that the point of buying the DLC was to further your characters progression and get new content. But it kinda looks like now you can further your progression without the content entirely. Doesn't seem quite right in my eyes.
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The dlc was not for progression it was just for more content as in story, not all content was ever going to be restricted to only dlc purchasers so they could feel special for having bought it.
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Iron banner is now a DLC exclusive event