So as an update, I nuked all my machine's OS's and did clean installs from a format ( I have the OS on a seperate partition). I then used multiple pieces of software to scan the existing drives for any keyloggers or trojans and so far I seem to be clean.
I also setup a new email address and moved my battlenet account onto it and as some have said on the forum before, I will keep this email address solely for WoW. I then did another update on my password and then logged back into the game. What seems to have happened is that they did not delete any of my toons, instead they transferred 3 of them to other realms, when I am restored, will blizz automatically move these toons back or do I have to add this to my ticket?
I did question the failed paid transfers with a GM and he said it happened after I submitted my ticket, what I am wondering here was, were they logged into my bnet account when I logged in and so it allowed them to do the transfers while I was logged on, not sure. Anyhow, all the above steps to clean my machines were taken later in the day and so I am hoping I am clear of the mess.

So now I think I am into the waiting game to have the accounts restored, luckily I have one account untouched which is the account that I have my tanks on and was using to powerlevel some alts and so the wait for restore will not affect my gaming at all.

Overall, a pain to have to do fresh installs etc but I am glad that I got hacked on my WoW account and not some other real world bank accounts or some such which I have also now changed all the passwords for.

Still no idea where the compromise came from but I think one of the posters here may have been correct in stating that the hack may have been a few months ago and the hackers are just doing mass onslaught on people's accounts, I suppose the logic might be to overwhelm blizzards support and so inexperienced users may be left vunerable longer due to trying to call blizzard etc instead of taking immediate action.