southern: Humans: Balanced
Human strength only arrives late, but when it does, it's incredible. I think cavalier has the highest DEF score in the game at 6, and the Air Galley needs no introduction.
Above Average.
Cavaliers don't dominate the Defense field. Leprechauns, Nature Elementals, Red Dragons, and Gold Dragons all have higher defense, and several units (Warlords, Basilisks) have the same defense. Cavaliers are easily the Human T3 unit of choice, but they don't stand out from the general field of units for being stronger or weaker.
Humans have 3 primary advantages: 1) They'll work with anyone except the undead. 2) A lack of abilities is reflected in a lack of extra costs. Iirc, humans pay a little less than most races for a given type of unit, and that can matter when you are scrounging for every coin. 3) They don't have the perks of other races (dwarf mountaineering, elf forestry), but they also don't have the drawbacks (slow dwarf speed, weaker elf melee damage).
I'll concede Strong.
The Azrac racial of higher attack and lower defense means this is one of two races where I'd actually consider building their swordsmen (the other being Orcs).
Elephants and Rider move speed are both exceptional, but T3 looks pretty meh. I've never seen Avatars in action, so I'm not sure how they work in practice.
Elephants and race relations are the only things that push this race above Balanced.
southern: Frostlings: Weak
They have some good units - Yeti, Penguin, Glow, and Drake - but the Penguin is weaker than Lizards, and the good t3s/t4 aren't as good as the best ones in some other races. Their unique point is the Frost Queen's Path of Frost but I don't think you can justify making those instead of a more straightforward t3 that kills stuff.
Below Average.
Frostling ranking depends pretty heavily on their situation. Their lower move speed hurts quite a bit more than general Cold Protection helps (few adversaries use Cold Damage).
The Penguin's whole draw is swimming. They can go after lizards and expand acrss water a lot easier than other races. Having a decent flyer at T3 also helps Frostling mobility.
Frost Queens look like a support unit. They can solve the water problem for an army, and changing terrain is a minor perk for them between the concealement and the minor morale boost for units and cities.
Other perks are neutral race relations and a ranged T4 flyer.
southern: Lizardmen: Above Average
I agree that Lizards are Above Average, riding heavily on swimming. If a map has very little water, then the lizards drop to merely Balanced for that map.
southern: Halflings: Above Average
Master of Magic called, it wants its slingers back. Archers are strong and Slingers are the best archers. If you're not looking for wallcrushing, then the slinger and the Pony Rider are the new strongest t1s. The rest of the lineup is unexciting but has some decent troops like the centaur and the rogue. I have no idea what Leprechauns would be like in a PBEM.
I think Halfling speed and lack of outstanding combat units after T1 drag them down to Balanced.
I don't like the 1 damage cap on Slinger shots, but I can't argue that 4 shots per attack doesn't make up for it. Marksmanship makes these units beastly.
T2 is garbage, but T3 has some decent choices for different functions.
Leprechauns have excellent defense, but they are lacking on offense. Invisibility would probably make them a PBEM nightmare for everyone except High Men, especially with some decent buffs. Amusingly, Life is probably the worst sphere for Leprechauns.
southern: Elves: Balanced
Good archers, some decent t3s. Nothing jumps out at me besides that.
Above Average.
-Archers start with Marksmanship.
-Riders have forestry, good move, and Vision 1.
-Clerics have Entangle.
-Rangers do everything except Fly and Wall Climb, and they do it with concealment.
-Unicorns are stronger cavalry with innate Magic Strike and Healing.
-Nature Elementals have innate Entangle Strike.
The only thing they are really missing is True Seeing.
southern: Dwarves: Below Average
Mountaineering isn't totally abuseable since it still costs 8 MP/hex, but it's still enough to make lowlevel Dwarves respectable. IN PBEM Catapults are totally overshadowed by Rams and unfortunately the Bombard is too. Moles tunnel well but like the Frost Queen that's a lot of time and money for a specialist unit that's mediocre in a fight. Firstborn are weak. That means Giants and the Balloon are where it's at. Giants are good, but they only have 3 DEF.
Never seen or used the Balloon but might it be as strong as the Air Galley? No combat, smaller capacity, but so much cheaper and faster to make, and the same movespeed.
Below Average. Camping on mountains is nice, but 8 move/hex is especially rough on the lower Dwarf speed.
Berserkers are a mixed bag, trading defense for damage, hp, and round attack. I've never minded having them, but I'm not sure they are worth building instead of archers.
Balloons are weaker than Air Galleys, but they are quite useful. I used some in the campaign levels, and having one town pumping them out really helps move your army around.
Giants are excellent units. They have good attack, great damage with every attack, siege-range wall crushing, and they hurl boulders even in the first round of auto-combat. They outshine First Born by being nearly as strong, faster, and cheaper in both gold and time.
Moles are primarily for underground exploration using their Night Vision and Tunneling. They are decent, if uninspired, combatants.
southern: Highmen: Strong
30 movespeed for their units, t2 cav with healing, decent high tiers - Titan is a tank but with 36 movespeed - all have truesight.
Strong.
Everything you said, and they have good relations with the Humans! Their otherwise-poor race relations are their biggest drawback.
southern: Dark Elves: Balanced
A little better than elves because of the Lightning Bolts on the priest. Incarnate is cool but I assume that in a PBEM it'd fail its touch attack once and get killed by enchanted weapons.
Balanced.
Dark Elf versus Elf strength is situational. They both have strengths, but their strengths are in different areas. For example, Dark Elf night vision is an advantage underground, while Elves have forestry.
Incarnates can be very fatal, but Nature Elementals aren't hamstrung by as many situations.
Overall, I think Dark Elves sometimes excel, but Elves are more generally powerful.
southern: Goblins: Above Average
Good archers, even if the rest of their lowlevel are below average. Trolls are worse than Yeti/Warlord/Titan etc. Beetles have 40 MV with wallcrushing, and Karaghs have 44 movespeed, I think that makes them very good lategame even if they're a bit lacking in a straight fight.
Below Average. The early tiers are simply too important.
Spearmen's first strike is surprisingly good against other race's swordsmen, but 2 damage and 4hp means they fall apart that much easier.
Darters have 3 poisonous shots per attack, but they have a 1 damage cap so they need a lot more shots to actually make the kill. Again, 4 hp leaves them dying that much faster. Darters DO make good support units for other armies by poisoning a target to soften it for other units to kill.
Trolls don't have great defense, but they do have decent attack and hp, and they have great damage. They also have Regeneration.
Beetles are mediocre fighters, but that 40 move is lovely, especially when you are trying to Tunnel.
Karaghs are the Wrath Of God in land-bound form. Amusing thought: perhaps all the other goblin units sacrificed a portion of their combat ability, and the race installed all the extra bits into the Karagh. :)
southern: Orcs: Below Average
Lowlevel troops are basically unremarkable, though the cav and ballista are better than usual. Swordsmen don't matter in TS136 sadly. 3rd level is weak imo, Doom Bats have such bad stats, Assassin is weaker than the Rogue, Warlord is too slow. Red Dragon is good but I still think Orcs are Below Average.
Below Average.
Swordsmen have extra damage.
Warlords are only average speed, but they are excellent killers. That kind of describes the race as a whole: they have trouble getting places or doing things, but they are lethal in combat.
Doom Bats are scouts/thieves for use underground.
Assassins are for solo, concealed, wall-climbing missions. One could be added to a Warlord army to poison targets.
southern: Undead: Above Average
Decently useful undead abilities, then perhaps the best t3s in the game, all with their own niche.
Yep, Above Average.
Racial Renegeration is wonderful, and their units have several other specials without significant stat degradation. Race relations hold them back.
southern: In sum I rated 1 race as Weak, 2 as Below Average, 3 as Balanced, 4 as Above Average, and 2 as Strong.
That means my assessment of racial balance is itself unbalanced. How ironic.
Strong: 2
Above Average: 4
Balanced: 2
Below Average: 5
I suppose I'm also unbalanced.