A Blizzard representative today announced that they're working on a service for players to switch factions in World of Warcraft, going from Horde to Alliance or vice versa. "There's still much work to do and many details to iron out, but the basic idea is that players will be able to use the service to transform an existing character into a roughly equivalent character of the opposing faction on the same realm. Players who ended up creating and leveling up characters on the opposite factions from their friends have been asking for this type of functionality for some time, and we're pleased to be getting closer to being able to deliver it." They also said there would be "some rules involved with when and how the service can be used."
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