The joke is that there's no 'u' in exalted, but people put one in there due to a surplus of the letter 'u'. I don't know if it's a EU thing only or what, but players have a tendency here to spell words wrong in-game.
Take Gnomeregan, for example. For many, many years, before the game became a single player RPG with a bit of multiplayer sprinkled on top, one had to interact with the other players to run dungeons. The phrase 'LFG <dungeon> <class> <role>' was used a lot in the Trade chat channel.
Writing all that over and over again is hard work, so people started shortening the already shortened sentence even more. They found that there was no point in writing the entire dungeon name when half of it, or less, was more than enough to convey the message. Dire Maul became DM, Scarlet Monastery became SM, The Deadmines became... VC, since DM was already taken (originally, Deadmines was DM, but then people went ahead and leveled to 50).
Gnomeregan, being one word, could not be shortened as much as the other words. There was also the problem that part of the dungeon's name was the name of one of the races in the game. You couldn't really write 'LFG Gnome Warrior tank!' as that would give off the impression that you're a Gnome (not popular in Orgrimmar) and that you're not looking for any particular dungeon, which would prevent people writing 'LFM <dungeon> <class> <role>' from finding you.
In the end, it was decided that 'Gnomer' would be the perfect abbreviation as it would set it apart from the race, but also shorten the original word by almost 50%, allowing more time to be spent looking for porn or whatever.
As new players joined, they were introduced to the dungeon 'Gnomer' by the chat channels. They knew that it was not the complete name of the dungeon, but no one used the complete name. This meant that when a couple of dyslexic, but brave, players started writing dungeons by their full names again, Gnomer turned into Gnomer-whatinthehellisthatthingamajigandstuff.
People literally GUESSED what the latter half of the word was, leading to suggestions like 'Gnomergon', 'Gnomereagan' and my personal favorite: 'Gnomeregonegon'.
Now, you may be asking yourself what the hell this has to do with your question. Nothing, except to illustrate how people suck at spelling in general. A complex word like Gnomeregan becomes Gnomereagonan and exalted morphs into exhaulted.
This degeneration is showing signs of acceleration, by the way. Six or seven years ago, people couldn't spell 'Gnomeregan' and now they can't spell 'you'.
Edited, Dec 30th 2011 6:12pm by Mazra
____________________________Please "talk up" if your comprehension white-shifts. I will use simple-happy language-words to help you understand.