The strictly neutral starting zone doesn't function for Blood Elves/High Elves due to how the lore is setup presently. The only way to get that to work would be after a revamp and Silvermoon is in the mist of a civil war, where you start out as a Elf...probably a Blood Elf, but eventually have to pick a side, since not all the Blood Elves were happy with the idea of joining the Horde....they just would get mind controlled every time they spoke out against the ministers.
But that's not the best way. The Allied Race setup is perfect for High Elves that are in no way neutral. They are For the Alliance types from their level 20 start. Set them up in Stormwind or Dalaran, or hey even Outland....the ones that decide to come home at last...Alleria's been found, her youngest sister has a core of your kin still fighting the Horde, while her other sister is undead and leading said Horde, which holds Silvermoon. The Sunwell has changed. Your people are not what they once were 25 or 30 years ago. You can't relate to them anymore. You stick with the Alliance because that is what you know now. It beings you more comfort that the idea of Silvermoon crawling with undead, orcs, and trolls in every street corner (that may not be how it is, but that would be good propaganda). Down with the Horde! For the Alliance!