I’d argue that the destruction of locations does not add to narrative tension, but robs us of future story potential. Take Theramore, for instance. A Human kingdom on Kalimdor had plenty of potential plot threads, that was squandered for cheap destruction shock value. This is even more prominent for Forsaken and Night Elves, who are very tied to a sense of place: Lordaeron and the forests of Kalimdor. By robbing them of home and hearth, you take away a lot of their narrative impetus. They no longer become world powers with culture and history, but aimless refugees.
I think Night Elves and Forsaken deserve more narrative than the dead ends that are the streets of Stormwind and Orgrimmar.