Sounds like a hack and good on you for reporting them.
I would like to chime in say that 700+ is still playable. Of course, it is far from optimal, takes some getting use to and some classes are not as frustrating as others, however, as I am now in a location that for the time being only has satellite internet and my vanilla wow addiction is still strong I have leveled multiple characters to 60 on both Elysium and Darrowshire and still had fun. Raiding and dungeons are not typically any harder and group/raid members rarely know I have bad lag (I have asked) and this is in the roles of tanking, ranged dps (melee can be frustrating) and healing.
I will never snipe spawns as they appear and in close PVP confrontations and match ups I am typically killed/beaten but in general can hold my own with and average player of similar level and gear.
Cheers,