Sadly, as far as the in-game lore and history goes, you're quite right. The Night Elves and Humans are xenophobic, snobby, elitist, and downright awful. The Gnomes and Draenei live as outcasts and seem to understand they aren't the greatest thing since pants pockets, and the Dwarves don't seem so bad, though I've never played one.

I played several Alliance chars to level 50, and then started a couple of Horde chars (my highest reaching 40). I was -very- impressed with Thrall's in-game messages and conversation, and quest lines. In fact, the only Horde race that does NOT seem to be on some sort of noble mission is the Blood Elves, and even that changed somewhat with 2.4.

M, while I can see why you think humans and nelfs are xenophobic I fail to see how the horde is any less so. The Forsaken's "Noble" quest is to eradicate all life on Azeroth. The trolls hate all other races and even dislike others of their own race not in their tribe. The Orcs, while they are united (mostly) under Thrall are still blood thirsty and quick to kill any in their path. Belfs are magic junkies and about as bad as the nelfs, if not worse, in their intolerance and blind lust for power.

I can hear some of you saying well the Tauren are a peaceful race at one with the Earth! We go start one and you will find yourself killing of those _subhuman_ Quilboar. No there is no race on Azeroth without blood in their past or bad people among them.