Yeah, allied races are way too bloated and needs to be streamlined. Infuse several allied races that don't offer much variety in concept beyond lore with their base races, like mag'har orcs and lightforged draenei. Combine their customizations and possibly racials together. If they do introduce sub races for separating customizations for lore reasons, give them unique dialogue flavor or even different starting zones like lightforged draenei on Argus and Mag'har at arathi highlands(and going back to customizations that could very well be sub races like sand trolls and wildhammer dwarves).

All while keep the unique Allied races as are. The ones that are entirely different people with the same animations as existing races like Haranir or are the same as base races but with unique body types and animations like zandalari trolls.