Something that's always bothered me are the favored classes for a couple of the races. My suggestion is:
Elves - Ranger (and/or possibly druid)
Gnomes - Wizard (and/or sorcerer)
My reasoning! Elves are graceful forest-dwellers. Ranger and druid are natural choices for them that fit perfectly. The quote on gnomes is "...where elves have a tie to nature..." This, to me, does not say sitting in a library, reading a book, memorizing. This is trekking through the wilderness, tracking animals, surviving.
Gnomes are magical by nature. They have spell-like abilities built in. They are perfect casters. I admit, bard does make some sense with their whimsical nature, but it only scratches the surface in magical potential of what a truly focused gnome could do with raw power. A gnome is a creature of magic, not a creature of entertainment.