1) Factions and Races can commonly be intertwined as well. "Draenei" isn't a race, and its literal meaning is exiled ones. The draenei (pronounced as DRAN-eye, DRAHN-eye, or DRAYN-eye) are a faction of uncorrupted eredar who fled their home world of Argus. Similarly, the Forsaken are also not a race. They are a faction of undead beings, be it former human, elf or other. We still refer to both Forsaken and Draenei as races.
What the OP proposes is that the Demon/Elf hybrids be referred to as Illidari.
2) He didn't say they were genders. Read his statement again, he said you can choose between NE and BE and their genders respectively.
Well. On hand we got Night Elves, who already sacrificed much to protect home from the daemons(Like Illidan did) so it's obl. they gonna rejoin Alliance!
On the other hand we got Blood Elves... Those actually didn't even know 'bout allies with Horde has been made(Acording to story line those leaved with Kael'tas before High Elves separates among the Alliance, right?) So I'd like to see Blizzard "cares" 'bout lore, but i can only hope....