You got it 100%. This is them in their twice weakened form, after having been beaten up for 10,000 years due to their first weakness.
Though I would assume that they would regain their power circa the start of WoW not 10k years ago. Simply because originally they put in a substantial amount of power but not so much that it would impact them.
They just never imagined one of their own would betray them. Which is what really hurt them the most.
Malygos losing some magic hurt, but seeing his flight decimated drove him mad.
Alexstraza losing some life power sucked, but seeing her children literally torn from her and forced to fight, and die, for the Orcs hurt her worse.
Noz and Ysera… IDEK what they were doing tbh.
But the point is the beatings the flights took as well as the power that was stolen via fraud led them to being a shadow of their former selves by the time WoW started.
And even that shadow was still probably stronger than either faction…
Edit: I highly, HIGHLY recommend reading this especially with Dragonflight, along with Day of the Dragon and Night of the Dragon.
Well, it won’t let me link to wowpedia but just google War of the Ancients Trilogy.
Old books, written around vanilla WoW. I remember when I was in Boy Scouts I would take them on every camp out to reread… they are so beaten up it isn’t even funny. But if you can find a copy they are great reads, even if some things aged a bit poorly (IE, Vereesa’s attitude seems different than later on, and everything about Rhonin hits me right in the feels).
Also, you get to read about the best Orc ever, Broxigar!