Annoyed by this sudden non-working of Freecap I decided to look into this problem.
I didn't find anything to fix the Freecap solution in the original post but I think I may have found something better. This took me an hour or two of digging around and experimentation so you all
owe me one.

Actually I didn't discover anything myself, I just followed the trail of disappointed AU/NZ players to
this lengthy post (which you needn't read). The short of it is that some niggling part of WoW's implementation of TCP/IP causes unnecessary delays of about 100-200 ms. Supposedly proxy services (like the one mentioned in the original post above) fix this problem to give you a better ping. (Though that is not to say they are obsolete in light of this fix, as they are still a more direct route at the very least.)
The thread suggests lots of things but I implemented just one, a very simple one. I'm sitting in-game with a ping of ~380, down from ~550. Go take a shufti in that thread if you want to try additional solutions which,
supposedly, make things even better -- just make sure you report back here with your findings!
Here's what I did:
- open regedit
- go to HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\Tcpip\Parameters\Interfaces
- here are listed many adapters with funny names (GUIDs), find your network card by looking for the one with your IP address (I imagine this will be your LAN address unless you have some dial-up or USB modem)
- now that you've found the correct adapter, insert amongst its settings this key:
Name: TcpAckFrequency
Type: DWORD
Value: 1 - you'll need to apply these changes -- the most fool-proof was is to restart your PC
Now I've no idea if this will mess up other TCP/IP things, but I daresay we should be fairly safe, as most latency-important things use UDP and hence would not be affected by this change.
If you do notice problems, change the registry key's value to 2 to return it to its "normal" state.
If you try this, common courtesy demands you report back with any latency improvements you may or may not experience.