You mention at the start of your post that one of the key pieces of feedback you received was:
“players want to continue to play on their chosen side of the faction conflict”
So let’s take you at face value (others wouldn’t) and assume Blizzard actually cares about the faction balance, wants it to be fair, even and wants it to continue that way throughout the lifespan of Classic.
Problem is, every TBC private server that has ever existed was eventually forced to take measures to preserve faction balance. Be it extra XP and gold for Alliance players, fancy mounts, or reserving 50% of server capacity for Alliance so Horde had to wait if they wanted to play, if left to their own devices the playerbase will be always overwhelmingly Horde.
And as retail has shown us, once a faction becomes dominant, it snowballs.
So Blizzard, in their infinite wisdom decided doing nothing was the best play, until I assume the sub loss and forum rage was so much they couldn’t ignore it anymore.
And Blizzard’s incredible idea, from a company who’s mission statement is “Dedicated to creating the most epic entertainment experiences ever”? Shove you in the opposite faction’s base with a crappy mask and a tabard. So EPIC.
Such nuanced and intelligent game design that really fixes the core of the problem!
Why are you incentivizing the dominant faction? Check any PVP server in Europe, they are ALL Horde dominated. Why does one faction get to enjoy the benefits of having the most numbers (farming safely in the open world, always winning the world pvp events, bigger pool of players to recruit from) without any of the drawbacks?
And more importantly, how can you feel this is good for the long term health of the game?