So, I am coming back from a hiatus and I am considering changing to Alliance. But of course I listened to the community and realized that there may be issues if I go Alliance compared to Horde. I would like to push decently high keys and eventually dabble into mythic raiding. Would that be a problem if I went alliance? Or is alliance truly dead?
I’m in the same boat, everyone and their mother is swearing up and down that Alliance is dead. You could wait for the cross faction next patch and roll an Ally on a horde dom server and try your luck there.
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Alliance has it’s large realms just as Horde does. Proudmoore and Sargeras are the largest, but there are plenty of viable options outside of those as well.
As far as keys go, it’s completely possible and viable to do whatever level you want through the group finder on any realm since LFG connects the entire region together. If you’re looking for more of a guild situation or trying to build a dedicated group that runs together, then yes, you’ll probably want to be on one of the larger realms.
For Mythic raiding, the two realms I listed are probably the best bet? But if there are other ones you are interested in, type them into raider.io, or wowprogress.com and see how many guilds are actively netting kills. (make sure not to select the EU realms in the box that pops up, they will be completely different)
Once you figure out what realm(s) you might want to check out, I highly suggest making a new character there first and reaching out to some guilds that you might want to join. Talk to them and find yourself a home before you transfer. That way you’re set as soon as you get there and you don’t find yourself in a situation where you feel like you wasted money because you can’t find a group to play with.
Best of luck on your journey! While Ally has certainly fallen victim to some exoduses to perceived greener pastures, it’s far from the dead lifeless black pit that the community would have you believe. The wow community is generally pessimistic by nature, but there’s always some truth to the sentiments. It’s just a matter of figuring out where that truth lies, and what’s been blown completely out of proportion. 
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For PVE it doesnt matter at all, just pick a high pop Ally server and have fun.
If u want to pvp then pick the race with the best racials for ur class but even without it u can still get to the top.