As one of the few people who really liked the human model, likes the dwarf model and didn't mind either the Kerran or the dwarf chicks let me just say you're full of shit on the DE model.
The issue with the DE model _isn't_ that it looks like fan art of Aladdin as one of Cameron's Navi. The issue is that it reflects the problem I had with the EQN Lore: there are no "bad guys" in EQN AFAICK. The DE artwork is not of an evil race twisted by Innoruuk, but of a bunch of sexually ambiguous elves that got dipped in smurf paint. The lack of (for lack of a better word) "evil" that we've seen so far in EQN is a bad sign. In the immortal words of South Park's Satan: You need evil to have good, so it must be good to be evil sometimes. Without a sense of evil in the world the stories that we create as players in the game will suffer.
The one rule from Disney that they should be following, but aren't, is that it takes a strong villian to make a good story, because good stories require obstacles that must be overcome, and the best obstacle is the master villian.
Disney's trick is to make a nasty villian and then add a cute evil pet for the kids.