Death Knights can be all races in Normal and PvP servers.
Only Humans/Dwarfs/Dreanei for Alliance and Orc/Blood Elf/Forsaken for Horde in RP and RPPVP servers.
Agreed?
Blizzard always says they do what is possible to please players... but clearly they don't care much for the roleplayer. I think this is good.
Nobody RPs in BGs or Arena so that won't have much of an effect xcept for racials... which truthfully isn´t central to PVP as classes are.