I like the setting a lot - the different races are well thought out and interesting (and different from the normal) and the background with the gods is good too.
My biggest question is could you go in to a bit more detail about what magic is and isn't capable of? I know you said there are the three schools but, e.g. how common is each amongst the population? Are people born with the magic skills (maybe with different degrees in it) or can anyone learn it, with the right training? Also, with elemental magic, how much can be done (e.g. can any elemental mage, e.g. create a big wall of fire or is this quite hard)? How about summoning things and creating magic devices (e.g. reciprocal scrying communicators, teleportation networks, etc.)? Similarly with psionics: could a really powerful wizard (with the right tools) mind control a whole city or is it a matter of slow suggestion, gradually working upon and manipulating a single person's mind over time, even for the most powerful?
As I said, I really like the setting - those were just the things I kept thinking I wanted to know more about as I was reading it.