Looking to upgrade from 2->5

I'm not keen on leaving so much loot to rot due to being the wrong classes, or having to farm repeatedly to gear the same class (is this really an issue, or am I psyching myself out over nothing?)

I'm looking at an all Blood Elf group to boot, as I don't like the greens or the furries.

Any specific problems I'd encounter with the following:

Warrior/Paladin
Priest
Mage
Mage
Warlock

Any suggestions on diversity? This is quite a bit cloth-heavy, which sort of defeats my own idea, but seems like a reasonably viable group if I drive the warrior (meaning the others are reasonably macroable.)

If I suck it up and do race mixing, I could do something like:

Warrior/Paladin
Priest
Shaman
Druid
Mage

That'd give me the gear diversity I like, but I'd have to go green to do it.

Thoughts/suggestions on possible issues I'd/ll encounter?

Thanks