Actually the goblins are working and they've broken Worgen.
The news about goblins being borked is no longer Breaking news (posted at the login screen(pics or it didn't happen(see below))).
I was able to make and play a Goblin.
Of course I had to figure out how to stop this lovely error first. It happened when I'd move.
ERROR #132 (0x85100084) Fatal Exception
Program: D:\WOW_Cataclysm\WoW.exe
Exception: 0xC0000005 (ACCESS_VIOLATION) at 0023:0111B05E
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Deleting the cache and the cache from the data folder (Have to do both) worked perfectly.
The Goblin starting area though sure is... erm... interesting.