Allied Covenant races would have to be faction agnostic. It makes no sense to give e.g. Kyrians and Venthyr to Horde and Necrolords and Nightfae to Alliance. And then we would have the Pandaren problem which Blizzard wanted to get rid of altogether.
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This sounds interesting. And it would give Shadowlands a nice finale on Azeroth (and Azeroth is really the only thing that matters in WoW).
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I mean if it would be like AQ opening or Isle of Queldanas from TBC where the entire server has to hand in resources it could be neat, but I think that stuff won’t make a return. So an entire content patch with just the premise of reforging one sigil sounds boring and dull in my opinion.