As a few of our readers have noticed, Blizzard has fixed the old problems with the Harvest Festival this year -- the new races of Blood Elves and Draenei can now do the quests that start outside of Orgrimmar and Ironforge. Last year was the first time the races had a chance to run them, and Blizzard hadn't implemented the quests for them yet. But this year, things are A-OK.
Unfortunately, there's no acknowledgement that they're new to the game -- while the quests do mention the character's class, they just see BEs and Draenei as just other members of their faction. It was a little weird running to honor Grom Hellscream with my Blood Elf, but if you want to be a good member of the Horde or Alliance (and pick up that nice food dispenser in the mail), have at it.