Everyone's doing the top ten troll questions. They really do seem to be ten of the most frequent topics, although there are certainly some missing (Level drain, yes or no? Save or die, yes or no? Are hit points limited to physical damage? I'd probably replace "Do demi-humans have souls?" with one of those...) Instead of answering all the questions in one post, I'm going to split them up, because hey, more post topics.
(1). Race (Elf, Dwarf, Halfling) as a class? Yes or no?
Don't care, when I'm playing. No, when I'm GMing. It's not the lack of variety for elves, dwarves and halflings that I care about; it's the proliferation of more classes -- an Elf class, a Dwarf class, a Halfling class, and so on. Why create a unique class for something that's really just a minor variation on an existing class?
To me, a Dwarf is a Fighter with modifications. A bundle of special detection abilities. In the interest of not wasting space, it's better to actually list the Dwarf this way, as basically a footnote.