Races with Charisma Penalties

[Umbran]

The only problem with this is it makes all but the rarest dwarves, insecure.

Only if you equate charisma with a sense of personal security. I don't. That's more a matter of the Willpower aspect of Wisdom, IMHO. A person with a 4 charisma can feel perfectly secure and sure of himself. He simply cannot project that out to others (or, magically speaking, he cannot project it out to the Universe).