I see two paths getting support in my other thread, one each based on my proposal and natebane's. These are just paradigms and specifics can be tweaked.
1. My Proposal: keep the general idea as is but weaken Faery, strengthen Elf and Halfling, and tweak the other races.
2. Natebane: revert to Halfling and Elf having the innate power bonuses, Faery having the damage bonus and spellbook versatility.Elf
+ 30% Combat Instant Spell Damage
+ 30% Sabotage Operation Damage
+ 30% Spell Duration
+1 mana per tick in war
Towers employ 50% normal workers (magic tradition etc. makes rune production more efficient)
+1 defensive specialist strength
Spellbook: Nightmares, Pitfalls, Mages Fury
Elite: 5/4, 700gc, 5.75NW
Faery
+30% WPA
+30% TPA
Spellbook: All racial spells (TOG, FoK, and CS are no longer racial spells)
Elite: 3/5, 850gc (down from 950), 5.25NW
Halflings
+ 1 Stealth
- 50% thief cost
+ 15% population
-10% Gains
Spellbook: Invisibility, Aggression, Town Watch
Soldiers 2:2 Elite: 4/4, 350gc, 4.75NW (down from 5)
Elf--Lost Nightmare
+ 30% WPA
+ 30% Spell Duration
+1 mana per tick in war
+1 defensive specialist strength
Spellbook: Pitfalls, Mages Fury, Clearsight, Chastity
Elite: 5/4, 700gc, 5.75NW
Faery
+ 40% Combat Instant Spell Damage
+ 40% sabotage damage
Spellbook: All spells
Elite: 3/5, 950gc, 5.25NW
Halflings
+ 1 Stealth
+ 50% TPA
- 50% thief cost
+ 10% population (down from 15%)
-10% gains
Spellbook: Invisibility, Aggression
Soldiers 2:2 Elite: 4/4, 300gc, 4NW (down from 350gc and 5NW)