Within the context of Classic, the method most frequently proposed is to re-tune bosses to make them harder. Rather than copying the numbers, re-create the relative difficulty. Kind of like, when you first start working out, you use small weights. When you get stronger, you lift bigger weights. The WoW community is more knowledgeable, more experienced, has better hardware, etc. We're "stronger." So give us tougher bosses. There are a lot of forms that could take. Bosses were constantly re-tuned during vanilla anyway, so if Ragnaros does 10% more damage or something, is that really a problem? I don't think it is. What about resistance gear? back in the day, collecting resist gear was a thing people did. But the numbers and strategies are so well known today that only the tank really needs it anymore. Bosses could be re-tuned with more resistible elemental damage so that's important for entire raids to gear appropriately. That would be entirely keeping with the spirit of vanilla even if the actually numbers sitting in a database somewhere were different than they were ~13 years ago. If you want to go a little farther, a few people have proposed adding new abilities to old bosses, adjusting their timing, etc.
For the duration of the fight, creatures in the immediate area will not be visible to you (but they may still attack you if they wander too close). Keep in mind that other players will still be able to see you and attack you if you are eligible for player vs. player (PVP). Other players will also be able to view your pet battle in real time, including the pets involved as well as their health as the match progresses.
Before we talk about layering, it's important to talk about the sharding technology used in modern-day World of Warcraft. When a zone in the game becomes overpopulated, players will be seamlessly moved onto a different shard, which is essentially another instance of the same zone. It is important to note that you will still be able to play with your friends, because you are moved to the same shard when you create a party.
In player vs. player designated zones, you will still be viewable and attackable by players, but you are not left completely defenseless. While engaged in a Pet Battle, any attack from another player will break you out of the battle. You will receive a 3 second damage shield that will absorb 50% of incoming attacks. The same exact wild pet that you were previously battling will respawn after you come out of combat with the other player. However, if you defeated the primary pet in battle prior to leaving the match, the pet and its team will not respawn.
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When it comes to Classic, Blizzard's goal is to provide an authentic Vanilla experience, but they also needed to come up with technology to handle many players at launch, which is similar to sharding. While the use of this technology will be limited to the first month following launch, many players are questioning this decision and wouldn't like to see layering in the game at all.