I agree but also…
I would want those thigh high heel boots for Juspion.
Venthyr mogs all a waste, not one single set with thigh high boots for me to strut around in!
Otherwise agree with all your points! There’s so much opportunity to expand on the different races in the game in unique ways that don’t require a whole expansion to dedicate to. Mage Tower is a good start but I don’t like how it’s locked behind Time Walking.
Could be something as simple as an in game holiday focused on events in the world vs what we have now which mostly just mirror IRL holidays.
Blood Elves and Void/High Elves could have something related to the Scourge invasion or perhaps something less somber but a celebration of their survival and maybe you get a few extra mog pieces here and there. Could get ranger style shoulders that Sylvannas wears or a hood that doesn’t make you bald and shows your hair??
Humans have plenty, maybe the fall of Stormwind or celebrating the retaking and reconstruction of the city? Dwarves and the War of the Three Hammers, Pandaren and overthrowing the Mogul and so much more that shaped the history of many existing races in the game.
I’m just spit balling ideas but again, agree it’s an understatement the appeal and affect Allied Races and the heritage sets had with player retention. It definitely kept people playing (myself included) well into BfA. Even the new core race customizations was what got me to resub after burning out on BfA! I even turned Priest Juspeon into a LFD so I can have bubblegum pink hair!