Ideas, point by point:
1. Rename the faction to "Forest Guardians".
2. Swap the positions of Elves and Dwarves (forest gnomes).
3. Add a creature: Forest Warden - an Elf who has achieved unity with nature. Can tame wolves, griffins, and iron wasps.
4. Add a creature: Craftsman - a Dwarf skilled in making bows, arrows, and traps.
5. Add a creature: Illusionist - a Dwarf who has mastered the art of illusion magic and camouflage.
With half-units, perhaps?
Forest Warden is a good idea, and upgrade it to Ranger. But let it summon, not tame. Who are iron wasps?
No need to create a Craftsman; instead, let there be a building in the town.
Illusionist - upgrade a half-unit.