It's only year 2. It's still worth it to reset into something good instead.
EDIT:
Dragonslaying shouldnt be a problem anymore since you can send leets to a dragon and leet numbers are insane right now. Only if you allow opposing kd econ to be so good they can send a lot of em, that's when they become a problem and then the paladins won't save you anymore either. Paladin is for support. If you want to support your kd with spells, elf has very little to offer and the paladin spells arent too great. If you want to play an attacker, paladin offers nothing and elf just ends up with too little offense. Even on 14 epa on horses, you'd still barely get over 150 opa and you still aren't that much of a threat. Our first war was vs elf war hero attackers and it was a very easy win, since they couldnt do anything against any of our t/m's. Elf isn't an attacker race and doesnt have spells like town watch, bloodlust, reflect magic or revelation that makes paladin worth it. No matter how you build this province or which aspect you want to focus on, it's always going to be weaker than something more focussed towards what you want to build for, whether it's attacking, sharing spells or playing it like a t/m.
EDIT2:
If you're deadset on playing it though, I'd tap into the defensive nature of elf. With max housing and lord honour you should be at around 29 pop per acre. Around 4.5 peasants per acre and 10% bank should be able to cover wages for 6.5 epa and 12 dspa. Use 8% stables for 6.4 horses per acre and 1% dungeons and you'll be looking at a little over 75 opa and with 10% forts 120-200 dpa depending on how much you send out. Allows you to run 4 wpa and 2 tpa, so you can share that clear sight (idk if any of your attackers decided not to go for tacticians, those that arent can now get some cs goodness too), and warbuild (obviously change to fit different opponents or position in kd) could be something like 8% farms, 10% banks, 10% guilds, 18% towers, 15% watchtowers, 10% forts, 10% hospitals, 10% rax, 8% stables and 1% dungeons. You will need the watchtowers and maybe even more, clear sight and illuminate, since both NS and AW will tear through you. You're pretty much a defensive a/m like that with stealth to do intel and bribe generals that can put acres in a difficult ot obtain place in wars. It's nothing impressive, but it is useful I guess.
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