Blood Elves lookin' like Alliance

Nathanya asks a good question:

...the Dungeon Set 1 paladin armor set bears the alliance logo, don't you think that'd be a little odd for Blood Elves that are on the HORDE side playing paladins to be wearing such a logo?

And Drysc responds with:

It's not something we're currently planning to change. Players wield items that don't appear to be of their faction, or blatantly appear to be for a specific race not a part of their faction all the time. You can pick up pretty much anything from the battle field and use it to your advantage, and although the paladin and shaman were faction specific, their items aren't.

Plus, a race that has recently reasserted themselves in the world and obtained access to a new class of expertise, or one that has recently arrived on the planet, would probably not be finding armor specifically tailored for them laying around dungeons.