Now let's say you have 5 less accuracy than your enemy's defence and your enemy has DR such that grazes only do 0.1x base damage, hits do 0.6x and crits do 1.1x.
Orlan DPS = 0.2 * 0 + 0.35 * 0.1 + 0.405 * 0.6 + 0.045 * 1.1 = .3275
Elf DPS = 0.15 * 0 + 0.35 * 0.1 + 0.5 * 0.6 = .335
Getting pretty close, pump up the DR any more and the Orlan will come out ahead.
(Nevertheless I agree that the Wood Elf is better for ranged characters generally speaking.)