I stand by my desire for it to be a multi-faction city. The story, since WC3, has been about the Horde and the Alliance always at each others thoughts, until something comes along where they need to work together. Watch the introductory cinematic for Mists and you will see what I mean.
The Legion is returning, and the forces of Azeroth will need a staging ground, what better place than then a kingdom without any people?