Plagues and other great diseases are important parts of history and some settings. They defy man and may even defy God in their swift and terrible punishment upon the body of society.
My issue with modifying/removing dwarves and elves is that the PC’s may want to play them.
One of the most powerful tools found in the World Building 102b article is the Worksheet. Here is a place to put the settings you might make with them.
What if a mage passes his powers on to his firstborn son, and a female mage to her first daughter, leaving the parent POWERLESS? A plain mortal, a sorcerer no longer, all wizardly might gone?
Or: what if a female wizard recieves the power of a mage who sires a child with her? Could lead to promiscuous witches and overly careful mages.