I'll agree with you there. Elf is such a broad term it's really hard to pin point which type our 'elf' applies to. While a lot of the times elves are portrayed as peaceloving, this isn't a peaceful game lol. I have to agree with your basic recap of elven abilities though, and I'll agree, physical strength isn't one of their better skills, compared to other races.
The lowered accuracy on an augumented arrow shot is another good idea for balancing. Something to take into account anyway. Elements can indeed give the user the abiliy to exploit weaknesses.. where an arrow shot isn't constant damage like a held weapon, there's still the lag between attacks and that. I'm not sure how much trouble it would be to work on balancing this. Perhaps put a limit on what kind of spells/effects can be used with the arrows perhaps.