Divine Journey

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I have a few questions regarding the game mechanics:

Fire - +25% to all damage dealt.
Air - +25% to action points, +25% to dodge.

Isn't fire a bit too overpowered? Especially considering the +50% to elemental bonus from the Celestial realm – that's a total of +37% to overall effectiveness, no wonder everyone chooses it.
What do action points affect? Is it only during peacetime?
What type of damage does dodge apply to – arrows/physical/magical?
Why do different races have different total skill point values? Okay, let's say the Imperian/Rosencrucian have 56/53, but the Elven have 67 points in total. In my opinion, this is an unfair advantage, and the game should be at least 20% more balanced.
Why aren't there weaker versions of mermaids?
Can I create a half-breed Aristocrat-Elf?
Can I create a Homunculus, add 10 points to Constitution, and the remaining 45 to Strength?

I think that's all for now; otherwise, I won't be able to decide on my choices because of this mix of things.