Now that the existing Heritage Armours have been out for a long time (…hint make the rest Blizzard) I think an interesting way of doing the races at Character Creation would be to outfit you with some basic gear like normal and scale the experience around that gear (not that it’s hard) and after creating for example a Blood Elf, you start your character at the Blood Elf Heritage Armour quest line. Learning and playing through the heritage of your characters race, and what makes them who they are, and at the end of it awarding the Heritage armour for that race to the character.
If you have already completed it once before you have an pre-unlocked feature to skip which they already have in place for other alt catch-ups where you get an XP Boost for the XP you would get for completing the quest line and move on to the rest of your playing as per normal.
This would only happen once per race and you would have the skip unlocked if it was already completed.
This can also remain in place as it is now and be able to be completed at Max level for those who already have said race and just want the cosmetic armour exactly like it is now in game.