I believe that the Elves are one of the most dominant races.

This race is considered dominant only at the beginning levels; after that, it becomes balanced. However, the truly dominant races are the Dark Elves and the Mages; they are simply overpowered, especially the Mages (I won't say why).

The Dwarves are the ones who needed to be nerfed.

Hmm, the Dwarves? You also need to know how to play them; if you know how to play, they're strong, but if you don't, they're weak. The Dwarves are very weak at the beginning levels, and not many players use them in games, so there's no need to nerf them.