Alcohol had long been demonised and portrayed as something negative.
However, ignoring all of that, there were still many people who liked to drink. Naturally, people cared much less about getting drunk in game.
Since this big festival was celebrated specifically for the invention of alcohol, then it also naturally wouldn't be limited to one city or one race only. Although it was the Dwarves who started this celebration, it was now a festival shared by both the Alliance and the Horde. Every skilled alcohol brewer gathered in one place, sharing and comparing their brewing techniques with each other.
Allergic to alcohol?
This was no problem as the players could safely drink in game.
Enjoy being drunk?
This was also no problem. Since it was in game, the players would at the very most drop their equipment on the ground and let others pick it up.
Didn't like to drink?