I think the dwarves are balanced. Yes, they're the slowest in combat and the slowest to start up, but they (overall) have the most HP, do the most damage, and have the best movement spells (the very affordable Seafaring and Chant of Hasting).
Elves don't have as many (or as good) self-boosting spells, and their relative lack of HP (the tradeoff for speed) means they are more susceptible to damaging spells.
It is very possible for any side to beat any other side, provided it is played intelligently.
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Where there is a great deal of free speech, there is always a certain amount of foolish speech. - Winston S. Churchill
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