Unability to read the DVD maybe disapointing but it is not a wine bug/misfeature. If you do not have read permission to the exe you're trying to run you can't really expect wine to be able to do anything about that. Just mount the DVD with unhide and proper mode or uid/gid values for your user/group. Why this problem didn't exist with burning crusade or original wow is because the file system used on the install media was iso9660 whereas the wotlk dvd seems to be UDF.