While there's no definite word from a blue on whether it's working as intended or not, there's an interesting buff on the Beta servers at the moment: Everyone seems to have a much longer breath timer when swimming underwater. Whereas it took about 1 minute for breath to run out, now it seems to last for approximately 3 minutes.
In effect then, it's like everyone has gained the Underwater Breathing racial of the Forsaken. If it's a permanent buff and not just some crossed wires, it should make underwater questing (and there is some in Wrath) a bit easier!
Of course, I'm not giving up my Hydrocane just yet, either. It seems like a strange change to make out of the blue, and it does negate one of the Forsaken's racials, more or less.