There was a similar spot for WotLK - right in Sholazar by Freya there was a neverending respawn of undead. I wound up grinding out my last level on my DK there. That still works, too.

I don't think they'd take this away necessarily - it isn't allowing people to gain xp faster than they could by any other means (or, not significantly faster), the "risk" equals the "rewards" in that the mobs don't drop anything unusually lucrative, and there isn't some exploit people are using to avoid dying etc.

The other day I ground for an hour in a similar spot - I did a test with a potion of treasure finding and ground for an hour, and wound up getting about 1.25 million xp (rested) on a team of 5 level 83 characters, and did fairly well with regards to loot - no world drops, but my JC/Tailor was looting and I got 2 of the trinket quests and about 21-22 stacks of Embersilk cloth. Not a bad haul, but there are certainly faster and less grindy ways to do about the same.