I agree, almost all allied races could just be rolled into their regular races as additional options of customization.
The only ones that stand out are void elves (which would be customization of blood elves if they had been horde, but since they are alliance they’d need to stay separate) and Nightborne (for the same reason). And then Vulpera is the only really unique race.
I think they should roll all the allied races into customizations, remove the entire “allied race” tab and just add Vulpera as it’s one race to the Horde, and then add a new race for Alliance that balances out the Vulpera. I think the Sethrak might be the ideal choice being (for the most part) enemies of the Vulpera.
I like the Lightforged Draenei, but if I had been in charge, I would have had it be a toggle box on any race to make them Lightforged, click it to replace normal racials with Lightforged ones like Space Laser and explode when you die.
And by any race, I mean Any Race. Horde or alliance. Why? Because everyone helped the Army of the Light. So all of them would potentially be able to join them.
I could see the argument of maybe not Undead or Void Elves, that’s fair. That gives one race on each side that can’t be Lightforged.
The Broken would have been a fine addition to the playable races. The question is, what do you do to them to make them fun?