Here is my Theory on how it should work.

Collection quests: These items should not take up bag space. If someone 'loots' the required item it should just give quest credit like a kill quest does. Think of it like a quest bag or something like our key rings. Or the basic everyone can loot the item flag. This makes a lot more sense for quests where your asked to get like 5 skulls or something to summon a deamon. Why do we need 25 of them? Are we going trying to end this threat or make it 5 times as worse?

XP gains while grouping: Right now with a 5man group the xp per kill is lame. Its ((xp/5)*1.2) or near that. It comes out to be like killing 4 mobs in a full group equals the xp as killing one solo. On kill quests where everyone gets credit this greatly reduces the xp for that quest than doing it solo. Change: Remove the xp division from grouping, but keep the bonus to 5% per group additional member. So solo a guy for 100xp. 2man group its 105xp full group 120xp. I would keep the current xp reduction in place for level 80's grouping with noobs. I would half the current xp given from elite mobs (they should still give out a ton of xp but not like 10k-15k a kill that you would get with rested soloing a xp giving northrend instance mob). 90% of the games content is not group friendly (all quests and areas not group specific) and you are penalized for grouping, yet 100% of the end game you have to group. This would help people with knowing how to play with others instead of soloing to 80 then wtf noob the endgame.

New Toons: I would either offer a one time paid subscription upgrade or make this something for a new expansion. Create 2 new start zones, one for each faction and make it just like the Deathknights start area. Pick whatever toon you want and they start at 55 quest to 57ish to get your talent points.

Recycle old content: So far other than to train, the only time I have left Northrend was for the retakeing of undercity event. Given the new ability to the game to instance areas, this should be done to vanilla wow. We should be going back to an updated Stratholme, Scholomance and stuff. The old instance should be there as well, but I see no reason not to cut/paste and repopulate these old instances when it is very relevant to the game. This will also spread out the population again, instead of 80% of the players all crowding each other in Dalran. The Malygos problem should have us maybe going back to Onyxia or Blackrock, Heck even Wailing Caverns and the emerald dream or Sunken Temple. Vanilla wow is litte more than a place to go farm old mats to level tradeskills.

I will give them credit for the RAF buisness model. I have friends and people I know that do not consider themselves multiboxers in anyway that shell out $15 for wow and $25 for a paid transfer to skip the 1-60 antique tredmill.