Using old world as patch content is good idea. But I think just graphic revamp is pointless. My idea for revamp is doing zones from scratch as new continents for expansion. And doesn't have to be full EK/Kalimdor. I would be even against it since it would be opportunity to expand whole world. We could have 4 full expansions from Vanilla world.
Old world would still remain as Cata option for leveling. With AH coming to new city (and I thjnk all profession/AH related stuff will be only there anyway) Orgrimmar/Stormwind become even more pointless. In future expansion after Exile's Reach we could just sail straight away to Dragon Isles for 10-60 and Chromie would just wait for us there.

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