Well, I certainly don't think I'm in a position to tell you how to better execute your own concept, but personally I would've dived in deep with the whole 'humans corrupted turn to elves/orcs' thing much further. Like, those would've been my stats. Trying to balance between the two. (not even sure if that's how you intended that setting bit to sound, but that grabbed my attention) And I would have just said "use a standard d20 system in conjunction with these rules" super explicitly. I thought it was PbtA.
TBH, I'm not convinced 200wds is enough to make an RPG in any traditional sense that includes character abilities and DCs and such, but that's me.