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ps: only the big dlcs have such a big power increse
Think of it as when a new expansion is released, the LL every one is pushed to (if below/whatever) is basically zero. Just without it actually being zero. So you have until the next expansion for that "reset" back to zero. So levelling up during the expansion/seasons allows you to do those higher level activities.
There're several caps in the game. Any gear dropped will have higher level until you reach the soft cap (1500 in WQ), to reach the powerful cap (1550) you will have to do weeklies and get powerful and pinnacle rewards. Pinnacle cap (1560) requires pinnacles to reach it (some weeklies and hard content like raids and NFs). The 2nd WQ season will increase those caps by 10, so 1510 will be the soft, 1560 - powerful and 1570- pinnacle, etc. until the next major DLC.
These are the caps for next season:
1350 - you'll start here
1350 to 1500 - play normal activites
1500 to 1550 - need to do powerful gear activites (has weekly limit)
1550 to 1560 - need to do pinnacle gear rewards (weekly limit as well)
I expect the absolute power level cap will increase by maybe 10 for each season, so every 3 months you'll be doing pinnacle activities to get topped off. Maybe the starting power level, power-cap and pinnacle cap will also increase by the same (10). Then in maybe a year or so the next DLC drops and we'll have a new starting power level at perhaps 1600 that effectively zeroes us again. I have no inside information mind you, it's just what I expect will happen.
As this is the start of an entirely new expansion they have raised the starting light level to 1350 so nobody should be able to grind higher than this during the current expansion and start the new one with a "head start".
Nothing is wasted, but anyone starting this game in the final week of a 6 month season is REALLY late to the party :-)