I really don't think it's as overpowered as people think it is, and in general I think that too much emphasis is put on racial abilities. Each race has their own situation where their abilities come into play greater than others, sometimes making them quite useful. The Pandaren racial is something that's useful across the spectrum, but isn't a gigantic buff.
Take, for instance, the Dranei 1% hit buff -- eventually that's going to be meaningless, even though right now it's exceptionally useful. Towards the end of the expansion cycle when hit is easily hit with gear, there will be little need for it. Now? It's needed a lot.
Another good example is the Human's movement freedom spell. That's useful in situations PvE-wise when you need to get out of a root, or when you get yourself frozen from insane amounts of traps spawning in the stone dog fight. Otherwise? Kinda pointless.
At the end of the day I suggest taking racials for what they are, nice little perks you get from your class. There's much much more important things you can do to modify and grow your character than think about racial abilities.
I had the annual pass, but stopped paying the subscription. If I return to WoW, I'll get Diablo 3 back?
You'll need to contact Blizzard support to be sure, but I do not believe you'd get Diablo 3 reattached to your account. Once you've broken your contract (and the annual pass is a contract, Blizzard is pretty clear about that), then you've lost all rights and claims to benefits received therein. That's pretty standard and 'common sense'.
I haven't touched pet battles yet, partly because rampaging across Pandaria on my Warlock is just so much fun, but also because I'm completely foreign to pet-battling games and I figure it'll take me a while to learn. Will low-level pet battling require me to start in the old world and work my way through each expansion like Archaeology does?
Yes, you'll need to work through the zones / expansions (more or less) in order to level up your pets. There's a lot of leeway, of course, and I hit 25 with my pets I was working on by the time I got to Northrend and found a nice grinding spot (the vultures off to the east by the Dragonblight temple).
Pet battles themselves are not hard, and you'll pick up the mechanics very quickly and easily. There's a lot more to t hem, of course, in that some pet types do better against other types, and then you need to have a strategy against harder trainers; but overall pet battles follow the same mantra as WoW -- easy to learn, (in this case somewhat) difficult to master.
They're a great mini-game, and tons of people I know are loving it.
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