The highest structure in Dalaran - the Violet Hold with Icecrown Citadel looming all too close..
Dalaran is a mage city, under the control of the Kirin'tor. It used to be situated in the Alterac Mountains, but now levitates over Crysalsong Forest in Northrend.
Similarly, it used to be an Alliance city, but is now a neutral sanctuary. Dalaran NPCs can still be found in Silverpine Forest.