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What did they mean by “Go either shadow or fire”?
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Probably that you've got Improved Shadow Bolt and Emberstorm in your destro talents.
Either you'll be using Incinerate or Shadow bolt, usually not both, so pick fire or shadow and respec a little (although I don't know how much of a dps increase you'd get from Catacylsm).
You have Soulfrost on your staff, so I'd guess you prefer Shadow, in which case Emberstorm won't really help you (you'll probably find that your DPS will go up a tiny amount if you don't use Immolate), if you can afford a respec then it might be worth doing, but don't worry about it too much.
I'd say your gear is pretty good for Kara, its better than mine was when I was at the Curator.
The tailored gear is overpowered, but I wouldn't change proffession for it, just keep doing heroics and Kara and save those badges for items that are equal to T6 (ish)