They said it wasn't going to happen, but it wouldn't be the first time Blizzard did a 180º on previous announcements. Of course, if we had really bothered to read between the lines, Blizzard wasn't actually saying 'no' to race changes -- only that it wouldn't be part of the paid Character Faction Change service. It was in their Faction Change Q&A that Nethaera squashed the idea like an ugly bug. It turns out the folks at Blizzard are shrewder businessmen than we thought, and what Neth's 'no' actually meant was that race change would be a completely different service (which they conveniently didn't mention at the time).
Although race changes were confirmed some time back, we received a couple of messages from readers tipping us off to the actual Race Change button being up on the Account Management page, falling under the Paid Services tab. How soon 'Coming Soon!' actually is, we can only guess. It's Blizzard, after all. Besides, Cataclysm promised us new races, and it should be interesting to see if Blizzard will allow changing to either a Goblin or a Worgen. It's possible that it won't be allowed at first to encourage players to try out the new starting areas, but Blizzard has been rather surprising as of late. Personally, I can't wait to trade up from Blood Elf pale to Orc green.
Thanks to Ryan and Tuttutt for the heads up!