It would be nice to be able to be races, benefitting alignment gain with the factions with NPCs of the same race and causing enemies of that race to attack you (Orcs attacking Elves, for example), this would not mean that there can't be evil Hobbits or good Uruks, it would just be harder, they should also stop attacking you after you gain somewhere between 10-100 alignment with them (by killing their enemies, or the alike), you should also earn alignment slower with your race's enemies. Enemies of certain races would races, but rather factions with no allies/friends with that race in it, while some of their enemies/mortal enemies have that race in it, like Mordor Units attacking Elves and Hobbits, but not Men, as there are Men amongst their friends and allies, this would mean that Men have no natural enemies, allowing players to play more or less as before. NPCs also refer to you as a member of that race, so Angmar Orcs won't call an Elf "Man-scum", though they may refer to the Faction you have pledged to or the one you have the most alignment with.
Benefits of the different races:
Dwarves: 1.5 Blocks Tall, Haste (I or II)
Elves: 30 HP (instead of 20 HP)
Half-Trolls: 2.5 Blocks Tall, Strength I, 30 HP (instead of 20 HP), Many Enemies, Tusks (possibly)
Hobbits: 1 Block Tall, Large Feet
Men: Many factions with Men in them, thus having no natural enemies and many factions which they gain faster alignment with
Orcs: 1.5 Blocks Tall, Strength (I or II) while not in sunlight (mod-sunlight, meaning that they always have strength in Mordor and Angmar
Uruks: Strength (I or II)
Ents, Huorns, Trolls and Wargs are too different from the others to be balanced and playable.
Dwarves, Hobbits and Orcs will have their skins compressed and their Hitboxes will be smaller, while sneaking their hights are reduced by 0.5 of a Block, when crawling/swimming Dwarves and orcs can fit into a 0.5 Block space, while Hobbits could mabye fit into the 0.25th of a Block made by a stair.
Half-Trolls will have their skins stretched and their Hitboxes will be smaller, they can sneak into 2 Block spaces and crawl/swim into 1.5 Block spaces.
What race you belong to should be chosen upon entering Middle-Earth or upon joining a world which has recently been updated to include races, it may be changed when all alignments are 0 (or some similar condition), it should also have a cooldown to prevent people change their race to stop being attacked by NPCs.
If this is unbalanced in any way, please reply with what is unbalanced and a solution/replacement.