2. Use the Genasi as it stands
Edit/Additional: Actually, I should probably explain why I choose 2. The reason is pretty straight forward - A Genasi gets none of the human racial benefits. They're not Humans with the Genasi Template also.. they're just Genasi. So if you wanted to have an elven-decended Genasi, that's fine. They're shorter, more slender, more suppile, and have the exact same stats as a normal Genasi. Dwarf-decended Genasi? Short, bulky, hairy, barrel-chested, ham-fisted, and have the exact same stats as a normal Genasi. Halfling-decended Genasi? Quick, smoothe, and barely inch in on the short end of medium size.. and still have the exact same stats as a normal Genasi.
*nod*
^_^