To be honest, life in Southshore Town has been difficult for quite some time. This didn't start when Duanmu Huai and others arrived on this planet; in fact, Southshore Town was already struggling before that.
From the map, it's clear that to reach Alliance territory from here, one needs to pass through Arathi Highlands, then cross Thandol Span into the Wetlands, and only then can you reach Dun Morogh or Theramore via Menethil Harbor.
However, the problem is that not long ago, Thandol Span was blown up by Dark Iron Dwarves, and Arathi Highlands was blockaded by Horde forces, essentially trapping Southshore Town in Hillsbrad Foothills.
Southshore Town had considered breaking through the Arathi Highlands blockade and repairing Thandol Span. But they were also attacked by the Forsaken, and the farms responsible for supplying food were destroyed. The iron-producing Azurelode Mine was captured by the Forsaken, and even the former mayor of Southshore Town was assassinated.
