Can't read your post. It's written too small...
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Human=Undead,the difference is that undead is dead.
I love dreanei cuz they are cool for shamans...
Why would priest be night elf? Ever?
And to the OP - There are races on both factions that are forbidden most of the time, cause they happen to be less effective via racial bonuses. On Alliance side, if your class allows you, you should be Human. Their extra trinket can be game changer on high level PvP. If you're a druid, you should pick Night Elf, without a doubt if you're a feral. And third race is Dwarf. Shamans must take Dwarfs and also if you're sure you'll be playing healer, then Dwarf can be more efficient than Human for you.
In PvE racials might not matter that much and also players can benefit of the rest race racial's for specific roles, for example FC Guardian arguably might be better to be Worgen rather than Night Elf, for example, but only for that.
But hey, I wouldn't feel bad if I were you, playing a race that is rare actually makes it kind of "unique" that you don't look like everyone else. As I already mentioned, racials are beneficial, IF you really know how to execute them and it mostly happen at the high level AND for specific situations.