You're right, and as Ithekro pointed out, they definitely didn't like the way the neutral race played out for many reasons. I was merely point to the fact that visual similarity between factions isn't (and in my opinion, shouldn't be) an issue.
That's one of the great things about High Elves is that they *aren't* neutral. Biologically the same as Blood Elves, but they're a group of elves that refused to forsake their allies when the rest of their race then. They're inherently Alliance, where as those that adopted the name Blood Elves aren't.
I can't dispute that point much — it is their opinion after all. I obviously disagree, but completely see where their stance is coming from. I just fall in the group of folks that know a soft "not now" from Blizzard is certainly not the death knell of a concept. Hell, even a "no", or "never" isn't anymore these days (a la players getting a 'purified' ashbringer or doomhammer, or all sorts of other things they said we'd never get.) They want to make the game they want to make, sure. They also want to make a game that fulfills people's fantasies. It seems that High Elf is one of those fantasies that's more popular than ever at the moment. Who knows where they fall if people continue clamoring for it.
I agree with you on that. I realize the issues they've had with storytelling like Ithekro drew attention, but I think they could come up with ways to do it if they really wanted to.