Yes. If you'd normally get 1000 XP from a normal mob, you'd get 2000 XP from a mob with rested bonus. If you have two heirlooms (giving you 20% more), you'd get 2400 XP.
"What is the most economic way to get the tokens needed for the heirloom leveling bonus equipment solo? My guild is incapable of running any instances, my friends aren't playing till 3.3 comes out and the only reason I'm playing is to prepare for a new character once Cataclysm comes out. Should I not waste my time since I lack the support and resources, or should I suck it up to deal with PUGs to get what I want?"
The best way is through doing the Argent Tournament dailies, although you'll need to become a champion of every city in order to access the quartermaster. Running Wintergrasp every week is also an easy way collect Stone Keeper Shards, and they pile up quickly enough.
Once patch 3.3 hits the live servers running heroic pugs will be insanely easy. You'll never have any shortage of badges then, and you'll be able to buy heirlooms at your whim.
Also, Kilcin asked some other very good questions, and we'll get to those in future editions of The Queue.
"Does anyone know if patch 3.3 is going to have a cinematic for it like the Black Temple one for BC?"
It hasn't been released yet, but I'd put money on that it will be coming out sometime soon.
"I've chosen the Oracles for my first two 80s. Why should I choose the Frenzyheart for #3?"
You shouldn't in my opinion. Once you get the Green Proto-Drake from the Oracles you don't really need the Orcales rep -- assuming you're not using any of their gear still (which you probably arn't). However with the Frenzyheart rep you can get a Disgusting Jar, which has useful things like potions in it that are going to be helpful for years to come, especially if you send those potions to alts to use while leveling.
Have questions about the World of Warcraft? The WoW.com crew is here with The Queue, our daily Q&A column! Leave your questions in the comments and we'll do our best to answer 'em!