Iksar hands down.
As a Necro you're already hated in most every area anyways. At level 20 you can click a Circlet of Shadows, instant invis, making traveling through cities extremely easy. You also have FD if you don't pay attention and break invis. You can bank with KoS bankers by scrolling into 3rd person and using walls to block line of sight while you right click on them.
Some vendors will start selling to you once you use skeleton illusion on this server also because it acts as a faction modifier.
Faction has never been an issue for my Iksar Necro. Almost every Necromancer guild that I'm aware of will talk and sell to your iksar Necro if you use Skeleton illusion (34 is first one).
The regen is huge, lets you lifetap less, stay at higher HP more and be more efficient overall. The main killer on Iksar is low INT. I have sort of okay gear on my Necro and I don't really break 200 INT. Now this usually isn't an issue since necros strength is mainly about regening back quickly. But there have definitely been some tougher fights like Halflings in PoM where I wish I had a deeper Mana pool. That being said, I would never ever trade my regen for that deeper mana pool.
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