Lansdowne is correct, but there are a couple of other racial abilities that also factor into each of the three Alliance races.
Dwarf:
Stoneform: (active) Activated ability that grants immunity to poison, disease, and bleed effects
Gun Specialization: (passive) +1% to critically hit with guns (NOTE -- DOES NOT BENEFIT PALADINS!)
Frost Resistance: (passive) -2% chance to be hit by Frost spells
Find Treasure: (active) Tracking ability that locates treasure chests on the minimap
Draenei:
Gemcutting: (passive) +5 bonus to Jewelcrafting
Gift of the Naaru: (active) Targeted heal-over-time ability
Heroic Presence: (passive) +1% chance to hit for all party members within 30 yards.
Shadow Resistance: (passive) -2% chance to be hit by Shadow spells
Human:
Perception: (passive) Increased Stealth detection
The Human Spirit: (passive) +3% spirit bonus
Diplomacy: +10% to reputation increases
Sword/Mace Specialization: (passive) +3 Expertise bonus when using swords and maces
Every Man for Himself: (active) Removes all movement impairing effects and effects which cause loss of control of the character.
I hate to say it, but that 10% bonus to reputation increases still strikes me as one of the best reasons choosing a race, but outside of that, in my opinion you still want to choose the race that feels "right" to you. I'm not a serious RP guy, but I want to feel an attachment to my avatar and I like my human pally.
To prove I'm also not a serious factionist, here are the Belf racials while we're at it.
Blood Elf:
Arcane Affinity: (passive) +10 bonus to Enchanting
Arcane Torrent: (active) Silences all nearby opponents for 2 seconds. Also restores mana.
Magic Resistance: (passive) -2% chance to be hit by spells
There's something to be gained from each of them (dwarves possibly less so than the other three, but it's not serious enough to matter) so it really is just a personal choice.