It's bullshit. A terribly designed, boring "event" that is in no way inspiring. I honestly cannot think of a lamer way for them to do this. "Thanks for the kingsblood, gates are open now!" Fucking weak.
It has also clusterfucked the economy. I have to by my runecloth for bandaids now because it is 5g a stack and I'd go through 30g a night.
It makes sense, though, and it's only the first part of the opening.
As far as the economy, you're actually using RC for bandages? Geez, man. Kiss a mage's ass for food/water and sell the RC. And why buy it in the AH? I get 2-3 stacks in an hour in the Plaguelands.