You are welcome. FWIW most of us have the exact opposite of the issue that you have....we create appointments in Exchange, Google etc. and those sync just fine to the iOS devices, but if created and/or edited on an iOS device, they show up with the GMT time on other iOS devices but not in Exchange, Google etc. A few others have reported what you are experiencing. This is demonstrated in a YouTube video I did:
http://youtu.be/cgP1zyi_iV8
After many of hours and work on this with my Exchange host and trying out various setups, we are near 100% certain that the issue creating both expressions of this bug is related to the "Time Zone Override" feature in iOS. Turning that on or off doesn't fix anything, or even change anything. But we believe that the code for this feature basically reconciles the time for any event that is created against GMT as a "fixed reference" time zone. iOS devices create some sort of data tag on the events and it is the way this tag is being interpreted by iOS8 and/or your subscribed calendars that results in the expression of the bug. If this were working correctly....as it did in iOS7, we would never see the GMT info and events would not be transposed into it.
When you do your test later with iOS7, it would be awesome if you could do the following and report back:
1) Create an appointment on your iOS 7.x iPhone and see how it syncs to your subscribed calendar.
2) Create an appointment on your subscribed calendar (Google etc.) and see how it syncs onto the iOS 7.x iPhone.
3) Check how both of the above have synced over to your other iOS device that is running iOS 8.1.1
4) Create an appointment on your iOS 8.1.1 device and see how it syncs over on the iOS 7.x iPhone
I am near certain that you are not going to see this bug expressed on your iOS 7.x device. My prediction is that....since your situation is flipped from mine....you will create an appointment in Google and the very same appointment will look perfectly correct on the iOS 7.x device and it will transpose to GMT on your iOS 8.x devices.
Also, I have no idea what gSyncIt is. But I also speculate that if, instead of using that to sync, you directly subscribe to your Google Calendar using the native service in iOS, that you will see this situation reverse: events created on iOS devices will transpose to GMT on other iOS devices, but events created directly in the subscribed calendar will not show as GMT on the iOS devices until they are edited/modified on an iOS device. If you have the time/inclination to test that out I'd love to hear the results so I can share these with AppRiver and Apple. AppRiver is my host and is working directly with top-level engineering support at Apple on this, so I like to funnel them any information I can.