The tale of the Sword in the Stone is famous. A sword is stuck in a stone for ages, and whoever pulls it out will be the true king of England. On New Year's Day, a tournament is held for all who wish to try to pull out the sword. At the tournament, an arrogant knight realizes he has left his own sword in the inn, and sends his squire back to get it in time for the jousting competition. However, the boy can't get into the inn, and instead takes this sword that was just lying around stuck in a rock or something. The squire is crowned king, and goes on to become the legendary King Arthur.
This appears to be WoW's very own version of the sword in the stone, found by Lessaya of Dragonblight on the border between Nagrand and Zangarmarsh. Actually, wouldn't WoW's version of the sword in the stone be Arthas and Frostmourne? It's kind of the same story, except with the evil and the soul loss. Anyway, it's a nice reference, and I bet whoever pulls that thing out will get a nice epic one-hander.
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