Thornir Alekeg
Albatross!
I think the Elf having Wizard as its favored class is leftover from the days of the Elf being a combination fighter/magic-user. It is more of a fluff thing than crunch. Elves are associated with magic and learning, so it makes sense from that perspective that Wizards be the favored class, but they were also always portrayed as somewhat frail and lithe.
Also, notice that all of the racial bonuses in the core races only boost one of the three physical stats (Str, Con or Dex). I think this was done purposely because the game is still focused on combat in its design, so to give a bonus to Int, Wis or Cha while taking away a physical stat such as Con would put that race at a disadvantage in combat and players would shy away from choosing it.
Also, notice that all of the racial bonuses in the core races only boost one of the three physical stats (Str, Con or Dex). I think this was done purposely because the game is still focused on combat in its design, so to give a bonus to Int, Wis or Cha while taking away a physical stat such as Con would put that race at a disadvantage in combat and players would shy away from choosing it.