If I were to go back in time with the lore and take us back to classic but kept all of the current core races I would make 4 factions and I think I have a bad idea of where things could go.
The Alliance: humans, dwarves and gnomes
The Horde: orcs, trolls and goblins
The Forsaken: undead, blood elves and worgen
The Guardians: night elves, draenei, and tauren
I hope the ones who run the game see this post and make it happenâŚ
TAG them 
âŚor to use these wonderful ideas to make improvements to the game.
Thanks everyone for sharing. Gracias a todos por compartir. 
sitting here disagreeing and being the one doing so. story of my life.
The dumpster behind McDonalds. I mean Sylvanas scavenged through a McDonalds dumpster and invented the blight with what she found there.
I advocated for this very thing when I first started playing. Undead are kind of at odds with living beings, they only make sense to me as their own faction tbh. Like, what are a bunch of shamen and stuff doing with zombies? Itâs never made sense and I think the only reason they are on horde is that they needed that scourge fan service without really working for it.
Thanks everyone for the support to my post and for the ideas you all have shared as well.
Blizz wonât do neutral factions, they hate that idea.
A lot of good points of view⌠let me tell you something, to me, NE and Taurens have no reason to stay in diferent factions as both have almost the same cultural goals (with a few minor changes but the core is basically the same, ecoterrorists).
no, you never make the number of factions even.
it has to be an odd number. Either ⌠one ⌠or three.
Alliance
Horde 
Forsaken 
This is a weird concept, and one I donât think I agree with. If thatâs the route Blizzard is moving, then itâs ultimately a lazy one. The Forsaken are arguably the last faction the Alliance would care to accept.
In my mind it would be more all factions neutral at the same time, with questlines bringing them together. Theyâve all done too much damage to each other to come together one at a time.
Um, Dominion is from Wildstar how about Leaf Lovers. All Elves will now be called Leaf Lovers.
ROCK AND STONE!
Since Blizz is just changing lore to fit whatever it is they are thinking at the moment I can go for Elves all being part of the same faction called Leaf Lovers. 
The Horde will be Orcs, Trolls, Goblins and Ogres. (All AR reskins included)
The Alliance will be Human, Draenei, Dwarves and Gnomes. (All AR reskins included)
The Nature type will be Tauren, Worgen, Pandaren and Vulpera. (All AR reskins included)
Forsaken can be neutral and join either Horde or Alliance and have undead skins for every elf race.
I kinda wish they the game maintained the four factions from WC3, but then made it so that thereâs shifting alliances and politics between the 4.
Night Elves and Forsaken got butchered because of how they were forced into the Alliance and Horde.
INTERESTING POINTS OF VIEW FROM EVERYONE.
Keep sharing cool ideas guys, many of them you may see them actually In-Game at some time.
Iâm no expert on lore, why should night elves be on their own?
Not interested. At all.
They should just change the tooltip and title associated with player undead to Forsaken. It is more accurate.
like this?
In short, racism. They see other races as âlesser creatures.â
Them being added to the Alliance was one of the weirdest choices in Warcraft, as they didnât really add any story establishing why it happened, unless Iâm forgetting something.
At least now there are reasons they are - they owe a lot to the Gilneans, who stayed behind as Teldrassil burned to get as many Night Elves out as they could, and fought alongside them at the Darkshore Warfront.
They easily could have had:
Humans/Dwarves - Alliance
Orcs/Trolls - Horde
Tauren/Night Elves - Nomads
Forsaken/??? - ??? (Maybe they couldâve had the Gnomer storyline be that all of the gnomes were diseased and Leper Gnomes joined the Forsaken as outcasts. Gnomes had pretty much zero lore before WoW, so it couldâve been done. They were a last minute addition to Alliance - Furbolg were supposed to be the 4th Alliance race, we were told, but the devs decided âmonstrousâ races should be Horde)
I agree, and include a bunch of other dark/iffy races to it for more choice.
Say, for example, Ogres and some of the other slightly dark racial suggestions. Could be fun.