I think that the best course of action for Blizzard at this point would be to focus on the more casual players and move towards a "freemium" business model.
With Cataclysm they tried increasing the difficulty of dungeons and raids, which drove off some players. The hardcore WoW players are always going to be a minority in a population of 10 million users. Add this to the fact that WoW is indeed going on 7 years, you will have a lot of hardcore gamers that will simply be moving off to the next big MMO.
So the biggest business opportunity is to appeal to gamers that are not super into following the MMO marketplace. Make it easy to get into and don't frustrate players with content that is very difficult. You can still have hardcore raid modes, but offer every player the chance to see all your content in some form.
Then you gradually focus more on real money items to the WoW marketplace and you remove the monthly fee. This wont turn WoW around and suddenly fill it with 20 million players, but it will probably prolong the time that the game remains profitable. Like all games it will die sooner or later, so it's really just up to Blizzard to squeeze out all the value from it before the plug gets pulled (which won't be anytime soon, I'm sure)
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