Okay this is something that’s bothered me for so long, so much so I will be making 2 hunters.
Leveling:
Night Elf: The ability shadowmeld allows you to stealth and avoid possible WPVP as well as mobs. Attaining a cat pet with stealth is essential to this as well. Also the ability to rush through extended mobs in a cave, Feign Death, Shadowmeld in a spot where they won’t aggro until you regain enough health and FD off CD only to redo the same run through again is actually extremely useful! The boost to base agility for rolling a night elf will assist in overall dmg very slightly.
Dwarve: Having stoneform here helps but only in rare poison, disease and bleed situations. Their gun trait helps reducing misses as well so long as they are wielding a gun. Their boost to stamina as a dwarf is a slight improvement as well. The largest advantages Dwarves have leveling wise is access to the three animals they need to tame for their leveling quest is much easier and closer compared to night elves as well using guns with engineering helps promote the class very well.
Result: Dwarves have the overall advantage on a non-PVP server when you use the traits mixed well with engineering. Their starter zone sets you up perfectly into engineering to use it for crafting and wielding the appropriate tools. You also avoid the long wetlands trail if you want to avoid going through all of the NE zones. PVP server wise however shadowmeld as an escape tactic is superior and would allow the avoidance of WPVP during leveling thus giving night elves the advantage.
WPVP/PVP:
Night Elf: NE have the ability to shadowmeld as mentioned before. This hands down gives major benefits to traps in wpvp. Setting a trap for horde members while shadowmelded, allowing your pet to attack them without them ever seeing you and avoiding their sights for extended times is all but too helpful. It also assists with mages, when a mage freezes you in place to cast a pyro in deadzone, Feign Death into Shadowmeld near end of their cast. What this does is it forces them to get close enough to see you or use their aoe, wasting the time they have the root on you. Also wisp form granting faster speed during death allows you to res faster.
Dwarve: Stoneform is extremely useful in more specified cases. Rogue’s poisons, slows, bleeds and blind can all be removed with it. The immunity is EXTREMELY useful when a rogue does catch you buying you time to escape without being slowed by their poison. It will also knock off the Devouring Plague spell of UD Spriests which are a serious threat. The bleeds of a feral druid as well.
Result: Night elves have an overall balanced WPVP advantage while Dwarves are much stronger against rogues and more resilient in dealing with druids and UD Spriests.
PVE/RAIDS:
Night Elf: Other than a SLIGHT agility boost from base race there isn’t much to add here. Shadowmelding during certain moments might be helpful but this is extremely situational in end game PVE. In wipe scenarios the night elf wisp form will allow a faster return however.
Dwarve: Dwarves have +5 gun skill. This can help yes but not as much as many might think. One of the largest more annoying facts is that most of the top ranged weapons are indeed bows. There is, if I recall, maybe 2 good guns in raiding, the rest are bows and a crossbow or two. Stoneform can likely help with removing certain debuffs however. Edit: Thanks to earlier comment for reminding me. In Naxx raiding the frost resil will also come handy!
Result: Dwarves just slightly come out with situational use of stoneform to alleviate debuffs and their gun skill WHEN they do have a gun. Otherwise there really isn’t that much of a difference.
RolePlay and Immersion:
Hunter as a class: Hunters are arguably the most immersive class in the game. With management required in dealing with feeding and maintaining their pets, training pets, keeping ammo and having to attain new pets for pet abilities the class has a lead on most others. However this lead is made massive when professions come into account. For maximum immersion get all 5 professions. Skinning and Leatherworking fuel ridiculously into the hunter play and feel. Being a hunter after all. First aid being a trait a wild man would carry on the hunt for those moments. Fishing and cooking both being serious survival skills of the wilderness hunter. All five fuel the hunter immersion beautifully.
Night Elf: NE have a distinct feel to their RP/Im aspects. Using a bow, having a cat pet and wondering the wilderness fuel into their immersive qualities beautifully. The hunter quest from MC item drop fuels amazingly into their role especially with the reward being thematically night elf in nature. Winterspring, the arguably most hunter-esque zone in the game, plays extremely well into the night elf lore and feel. Especially when trying to attain the Winterspring mount.
Dwarve: Dwarves do have the advantage when it comes to wanting to do something other than LW. They fit perfectly into the engineering aspects especially making ammo and guns! This allows you to go a different trail immersion wise. Winterspring also fuels the dwarven hunter immersion being a snowy area. Bring a bear pet and you are set!
Result: This comes down to subjective. Both have different feels when applied appropriately. The Night Elf with the more lone wilderness hunter while the dwarve the more technologically advanced hunter. Both races have amazing hunter feel and lore.
Like said, I’ll be playing both. I LOVE Dwarves much more but I cannot ignore my original character, the advantages of Shadowmeld in WPVP as a major WPVPer and the amazing immersion and RP lore of NE.