Kill dwarves, halflings and gnomes.
Rename the Fighter. If we're going to call a class what it does, let's call the cleric Healer, the Wizard blaster, and the rogue Sneaky McStabyouinthegut.
Make Psionics core (as in, PHB1 core).
Put FANTASY into fantasy, rather than making it Historical Fiction with Magic and Monsters instead of Science. By that, I mean - over here, you have a forest of pure crystal, infested with metallic bugs. Over there, you can walk up to the moon on a bridge of moonlight. Places that defy physics and are by their very nature pure, unadulterated imagination.
Demi-humans aren't culturally stagnant. As it stands, the only way you can have the difference between two elven cultures is if one is a subrace.
Fighting with a dagger is a viable option.