The humanoid races can be fairly separate or well-blended. I see the dwarves as being at least 70% of the population of their city; the elves have two cities - the more scholarly wizardly city is perhaps 50/50 elf and other, while the wood-elf one is about 90% elvish.
Okay, I think the tree-dwelling city-state can work for wood elves. Scholarly wizard city.. that needs more. Alright: along the borders of the desert, near an oasis. The scholarly city-state is one of the eldest city-states, being chosen for easy sea access, but the rivers have been diverted by an ancient magical catastrophe leading to the desert being its current size. Now the wizards focus more on theory of magic (for safety). The city is built around the giant library (think epic library of alexandria). Information is the currency of the city, but coinage works. The library house millions of scrolls filled with information about spells, theories of magic, celestial beings, solar bodies, summoning theories, appropriate blast radius for the perfect fireball, etc. For bringing in new information or a small fee anyone can get access to the great library. But this is where wizards are concentrated. Destroying any library property earns the enmity of nearly all the wizards of the "world". This city-state could be a mage-ocracy with the higher mages ruling the lesser mages who rule the commoners. It would be styled similar to a feudal system, but with bookish scholars rather than knights. Advancing in rank (level up) gets access to more spells, more components, and better facilities (+2 bonus to research spells).
The hobbyt city is pretty much all hobbyts.
Oh just use the shire as a baseline. "Big" city-state built into the hills for protection. They use lots of the flightless birds (chocobos?) for farming and the like. I really don't have much for your hobbyts who I assume are your world's halflings.
Other races I planned on making available to PCs would be grippli and MAYBE lizardmen - they're available in other regions of the campaign world, but don't HAVE to be here. I have no gnomes, and no dragonmen anywhere in my world.
Grippli could live in a swamp. Sure, they're supposed to be treefrogs (I had to use wiki, never remember hearing of these guys before), but swamps work well enough for fantasy. Now set it up like Lake Town from The Hobbit, but more hillbilly. So the city-state is floating in the swamp regions where two great rivers come together and form a great delta. The swamp has a lot of different fish species to farm and the ease of access to water makes the city a decent port, the "waterfront" is near the deep waters where larger ships can get to. This city-state would be utilitarian in build, but sprawling and haphazard in design. What I mean is that the buildings, rope bridges, and walkways are all efficient and well designed. The city's layout is haphazard and was formed organically as the city expanded to deal with a growing population. The government could be a council, how about a triumvirate? The three fish farmers each year with the most caught form the triumvirate.
Wizards are fairly common but probably not as high as 1% - maybe 1/2%? One in 500 would be fine with me. So if 2 million population total, that would be about 400 wizards. That seems scant, but not impossibly few. Half would probably be 1st level, and so on... 100 at 2nd, 50 at 3rd, 25 at 4th and another 25 divided between 5th and 6th.
Then I don't expect the population to be too high. There isn't enough magic to go around to help all the people. Instead wizards are mighty and powerful. Perhaps the Great Library is very well maintained and protected, but most people get along without magic and some city-states can outfit their higher-ups in the army/militia/town guard/etc with potions.
No horses, either. Giant flightless birds for riding, oxen or similar type cattle for draft-animals.
Okay, you have chocobos. How about using Moas for something. They were large flightless birds. Something like the North Island Giant Moa could be used for a draft animal in this. Then you don't need any cattle. Add in giant kiwis to serve as your donkey/mule substitute and you are ready to go with animals.