Thanks to everyone for your info about questing differences amongst races.
I've thought about that a lot; I'm thinking a lot as I'm reading the WoWWiki. However, there are some things I still have no idea about regarding the Alliance/Horde dynamic that I haven't come across in the wiki yet.
1) Be it Normal or PvP server, can you explore the locales/home cities of the opposing faction? I may go Blood Elf. Surprisngly, some of the most attractive home cities I've seen, based on screenshots are Horde, but some of the Alliance ones look scenic too. I just wonder how much freedom I have to explore or if there will still be some faction-based limitations, however slight.
Not really. Unless you are in a neutral city, opposing faction NPCs will try to kill you whether it be in the opposite faction city or in roadblocks out in the country. For the latter normally you go around or make a quick dash through. However, you will find many Neutral Cities, like Gaget, Booty Bay, Shatrath, and Dalaran, where the opposing faction is in charge, but they won't mess with you regardless of PVP or PVE server. Here is a
WoW City link if you've not seen it. This is just the major cities.
2) When you're not doing PvE/PvP, where do players usually spend most of their time? In their home city, neutral cities, or is there usually one popular area for all races within their faction's lands? I ask because if I'm to be spending considerable time in a game like this, I'd much prefer to have something attractive to look at. It's one reason why I decided not to go Night Elf. After I saw what their home city looks like--what appears to be an entire world dyed in purple--I knew I wouldn't be able to tolerate logging into that every time. And their skin's all grape-colored too.
Most of the time you spend out in the world in the current zone your are working on. The down time, time you need to sell or make stuff is mostly spent in one of the large cities that is closest to your current zone. Although I consider Darnassas, the Night Elf city to be beautiful, as far as having to hang out there, you don't have to worry about it. As having played several NE characters once you complete the NE starter area and basically out level Teldressil, the only reason you will go back there is to pick up and finish class related quests. As Alliance in the classic area, you'll spend most of your down time in Storm Wind City or Iron Forge. And you log back in from the physical location where you logged out at.
I'm not trying to cram Night Elf down your throat but they are not all purple. Here is an example. Jaquar has flesh colored skin. Although some prefer gnomes and dwarfes, I rate NEs as the sexiest female characters followed closely by Blood Elves. And besides Blood Elves, the Horde are mostly an ugly bunch. Yes I am partial.
BTW, for the most part zones are perishable in that you are just visiting to complete the quests offered. Then you will have out leveled the zone, completed all the quests and it's time to move on. In a way that is one of my disappointments with the game. I really hated leaving some of the nicest zones and there are so many nice zones. The main reason for returning to an out leveled zone is to harvest basic materials or visit a high level dungeon located within that zone.
What are the old character models? Does that mean all races prior to Burning Crusade? So the blood elves and Draenei have the better character graphics and home cities? I did read this, via IGN:
I started a Blood Elf and never got very far with it. Hopefully others can speak to this. My critique of the BE starter area is that it reminds me of Candy Land.

I suspect questing is questing regardless of race, class, or zone. The IGN article speaks of the BE area being better designed. I would not dispute that as I am short on experience with that race. However, I think you'll find that questing is mostly the same type of experience regardless of where you start. And if you get into the story, although questing can seem very repetitive in nature as far as what you have to do, it offers an immersive reason other than simply kill ten of this, collect 20 of that, fetch this special item, escort this NPC from point A to B, etc. However some percentage of players don't get into story. They just do the quests.
Personally I don't think the graphic improvements, while good, make that much difference regarding enjoyment of the game. I really enjoy starting characters in classic zones, but they are all good. It's really amazing how good most of WoW's zones are and they keep coming up with more and more as they did in Outland and Northrend and I suspect they will with Cataclysm.