what is the best faction for pve on icecrown ?
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Both factions are capable of dealing any PvE content. Horde racials have PvE focus, Alliance racials have PvP focus. Though there are some nice Alliance PvE racials as well (Shadowmeld, CC trinket to name a few).
In the end, if you're not trying to min-max for epeen reasons, go for the race/faction you like the aesthetics of the most.
Horde has superior offensive PvE racials and Alliance has superior utility racials.
As much as I hate to admit it, a human might be the best for PvE. Abilty to remove any CC and farm reputation exceptionally fast is unfair.