A Firestone is a Warlock-only temporary weapon enchants akin to Wizard oils. The Firestone increases all spell direct damage done by 1% and increases Spell critical strike by 7/14/21/28/35/42/49. They are Bind-On-Pickup, but unlike other Conjured Items, Firestones and Spellstones do not vanish after logged out for any amount of time (Much like a Wizard Oil created by Enchanting).
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The Original Firestone
Create Firestone conjured a Soulbound item that added Fire damage to the Warlock's weapon and bonus Fire Spell damage. Firestones were originally held in the offhand, then held in the Wand Slot after 2.0.1. This requires wand switching, but also allows a Firestone to be used with staves or a one-hand weapon with an off-hand item, remedying a common player complaint about the Firestone's lack of utility.
Both the firestone and spellstone were widely unused for multiple reasons. They did not provide comparable stats to Wands and, like other conjured items, would disappear if logged out for more than 15 minutes. This was changed in Echoes of Doom, Patch 3.0.2, to the current state. The change also included the Firestone's companion, the Spellstone.
When active, a Firestone placed a small fireball that circles the Warlock's weapon. Why anybody would use this item was a topic of debate. Since it only increased fire spell damage it was only potentially useful to destruction warlocks, and most of them prefer the crit bonus and use-effect of the Spellstone. The melee fire damage was mostly useless, because in any situation where a player could be meleeing, he or she would do more damage wanding. (The only exception were the magic-immune Risen Aberrations in Scholomance, which were also immune to non-holy wand damage but not the Firestone proc. This was not the case with most other magic-immune mobs, such as the mana wyrms in Karazhan, which are also immune to the proc.) However, many used its lack of utility as inspiration for several comedic videos. The most well known of these was known as Project Nerf Firestone
Patch 1.3.0 (07-Mar-2005): Equipping Firestones will now increase damage caused by fire spells.