You should see my server...it never fails to amuse me.
Over the years it's changed so much there is now a massive population imbalance in the favor of horde. While doing dailies, I regularly see many people of both factions in the area getting their stuff done. I have not even once yet seen any member of either faction attack one of the others while doing dailies. Every day, it amazes me. They even help each other kill some boss quest mobs, so if they happen to get hit it's just a stray aoe and everyone goes on their way afterwards.
I used to stick with the red is dead philosophy for sure, years ago. I can't say I do that anymore. I won't attack someone if they don't attack me first. It just seems to be my server code.