It's very possible that this will make things even worse for alliance players.
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Most people aren't rolling horde because of racials, that's something that people do at the high end-game to min-max. People are rolling horde because its less hassle than playing alliance. There needs to be incentive to playing alliance more than just a faction transfer.
1 free 60 or 70 character on alliance, a significant xp boost, free mount or whatever, boost to reputation gain, boost to honor gain. It will cause materialistic imbalance but it should even out over time which is a small price to pay imo for greater faction balance.