I would have done it differently and distanced Dominate from an evil faction. Leaving the infernals and undeads only as enemies of the scenario (Differing from WoW, forsaken should have model of all races and they ignore this fact the lore may have started like this Lordaeron, but so many other races that have died and are part of them ). Bringing in goblins to rival the dwarves. Ogre rivals humans (WoW players have been asking for playable ogres for a long time and it never came and would attract players to SoH) Orc rivals from elves. Later I would like to see other playable races: fish men, crustacean men, bird men, insect men, frog men, snake men... (Again, something WoW hasn't done yet. I loved what they did with the elves of setting and the blending of runes on draenei foreheads). Another thing is the combinations of race and class (they should be rethought and balance fac x fac gronthar can only be 4). Ex doesn't make sense undead being priest (healing spells should damage undead, as it is in tabletop rpg fantasy) and can't be assassin? It would bring + two classes totaling 12. Bard (magic user) and Monk (heal user). Getting 3 rules: physics rule: warriors, pirates, ranger, assassin... magic rule: mage, witch, necro, bard... heal rule: priest, druid, paladin, monk... Later fitting new classes into these rules.
I agree with you about Undead and Demons being too "evil" for being a playable race. But I really would like to play any class with any race (it seems like that isn't going to be the case for the game). I already suggested:
Changing their Lore to make them less "antagonists". Already suggested like 4 pages of a more complex lore for these Undead and Demons, so they can be priests and less "evil".
We have to wait for next weekly updates to see how it's going.