Toxiclord SuperSaiyanWoff
Although those are all very valid arguments that need to be kept in mind, there is such thing as a balance. Just because we nerf one race does not necessarily mean everyone will stampede towards another race. Your examples are basically marked by just really poor thought out balancing... something that we like to strive for on this server.
My ideal setting is such that the races plug-in (and eventually the traits plug-in) will reach a delicate and elusive balance in which people will choose their races based on a mix of PvP playstyle and lore flavor. No race has any significant enough benefit where one will think, "Damn, I really like being Maiar, but just to compete, I'll have to be an Undead or else be at a crushing disadvantage."
The point is to eliminate any unfair disadvantages so that people will not make their race decision solely based on this factor. Is this balance difficult to achieve? Yes. Impossible? Far from. People will always gravitate towards certain races over others, but we want this to be because of play style (i.e. they will choose Dwarves because they focus on an Axe centric fighting style) or lore flavor (i.e. One might just downright love being a Naga).
Regardless, I do think the races plug-in is due for a major overhaul. I hope the traits plug-in gets some love in the eventual future... I was really stoked about that when it was announced.