This...IMO SE made two big mistakes:
1. Trying to reinvent the wheel. Getting rid of standard features of an MMO in the name of being different.
2. Releasing the game prematurely (probably hoping to steal some sales from Cataclysm). Retail was essentially the same thing as Beta minus level cap. Another year under Tanaka, I'd like to think we wouldn't have a number of the problems were having now.
Then again, we'd probably still have fatigue...
Although I don't understand why they were scared of Cataclysm (other than the world being shattered) if WoW lost 900,000 subscribers from when it was released till now...
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