"Since there's no other dwarf players on wowinsider, what possible exploit could there be with these chests? Level 80's farming them(and the bosses) has been possible since level 40 players started soloing the Deadmines. So where's the exploit?"

The exploit isn't so much an exploit as you can just loot them easily and the Outland chests actually had decent cash and items in them. Notice how the ones not in instances all have crap in them? Its because gold farmers just farm the hell out of them. The outdoor chests in Original release used to have decent stuff in them too until Blizzard had to nerf it because it was being over-farmed by gold sellers.

Yes, they should fix the dwarf racial to give you something that works but stop the conspiracy silliness, it just makes you look petty. If blizzard sees an abusable issue in their game it is their duty to fix it quickly, not to leave something to be abused until they can program a new racial to compensate people.

It sucks, you will eventually get something to replace it.