Some light over the situaton .. The High/dark elfs are better than most races in most aspects.. Their basic infantry is far superior to most others, their elite infantry Are also realy good compared to the "Normal" factions(swordmasters :S)
Their archers are superb (One of the best in game)
Their cavalry are at hight with the knights of brettonia and Empire (dragon princes/Cold one Knights) Their Artillery are somewhat medicore, but not at all weak, but their monsters are the most powerfull and numerus of any nation (dragons, griffons, eagles, hydras, maticores, pegasus, harpies, white lions)
The elf commanders are skilled and powerfull, both in combat, archery and leadership. And lastly, their magic is only inferior to the slanns (teclis:D) All this skill comes at a price however, The elfs only real weakness is their high point cost (and a overall toughness of 3), So a army of elfs shuld be expensive to keep and raise.
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