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Another clear upgrade for me is the Sylvan Archers for the Elves.
I confirmed this in an Elf vs. Elf game, where I had the upgraded units and my opponent had the old ones:
In the first turn, my Elves took out all of the enemy Elves because of the better initiative. (Even if the enemy Elves had gone first, the effect wouldn't have been the same).
As for the bow, it's not the most useful item, in my opinion. I prefer to increase the attack.