It does at that. When I do this warfront on my Blood Elf Mage, I want to kill recognizable Alliance races and not be distracted wondering if that's another Horde player/NPC coming towards me or if it's an Alliance High Elf. The removal of the High Elves from the Warfront, which is logical given that they are not a major Alliance race, will aid in ensuring that each Warfront feels unique. High Elves look identical to Blood Elves and would take away from the tone of experience somewhat.
It will be a better experience now for the Horde, it's thematically appropriate for the Alliance and it is consistent with the lore of the game.
In regards to NPCs in the same location I am taking a guess here, the following is speculation.
Apparently Arcanist Ilira was accompanied by High Elven spellweavers at her location.
I have found
http://bfa.wowhead.com/npc=142001/circle-apprentice
and
http://bfa.wowhead.com/npc=136793/circle-apprentice
and
http://bfa.wowhead.com/npc=142002/circle-spellweaver
If these used to be High Elves, they are all Human females now. Whilst I am happy they have removed High Elves as that has led to the mistaken impression that High Elves are an actual force within the Alliance, it just strikes me as unbelievably bland. They could have varied it up a little, maybe some Dwarves or Gnomes instead.
I mean, I think THESE are the Horde equivalents.
http://bfa.wowhead.com/npc=136940/circle-elementalist
and
http://bfa.wowhead.com/npc=138878/circle-sorcerer
Orcs and Blood Elves.
A little bit more variety in other words.