This is a prime example of what I'd like to see with archetype races like the elves. Reminds me of Dragon Age's Elves--but only with the fact of most elves are slaves/oppressed by humans while others live free. But that's where it ends. The above quote expands upon the simple "Elves are slaves to humans" and gives a familiar theme a breathe of fresh air. If elves and dwarves are in PE, I'd like to see a new twist on them, like above and other examples in this thread.
Also the idea of humans or another race "making" a brand new species is interesting.
I've thought up of my own twist on elves, making them more hierarchial based on what zodiac sign they are born under. This determines what class they are in society and what general career they are forced to pursue. Another example of something familar but new.
Despite my support for subverted/new twists on old cliches, I'd also like to see something completely brand new, or at least not seen often. The idea of having your standard races in a fantasy setting inspired me to think of a setting where there are no elves, dwarves or humans. Instead the main races are birdmen, demonic humanoids, lizardmen and wisps. But with the complete lack of familiar faces this may not make the audience pleased.
I'm sure Obsidian wants to make this game fun for everyone, so that it why I voted for: "I don't dislike traditional races, but I'd like something new." But let me expand on that. If there are traditional races, I'd enjoy new twists on them and give them their own identity in PE. I think the best option would be a mix of elves/dwarves with a new spin plus non-traditional races.