1) Elven cultural drawback - it is a drawback, but not insurmountable and balanced out by strong virtues. Some elven players I loremaster for have taken Elbereth GIlthoniel early and used it to be Inspired on Shadow tests for a +2d bonus, boosting their chance of passing (and rolling more 6s!), reducing shadow gains. I've done this too. Plus elf players can take a shadow scar, then the first time they meet Arwen it converts over to a point of shadow instead.Thank you for the discussion, it's been really helpful!
With respect to Elves (at least, Lindon and Rivendell, I don't have the other books so I don't know if they have more cultures), how significant is their weakness (only being able to heal 1 shadow point per Fellowship Phase/only being able to heal Shadow Points during Yule)?
Is there a way to raise your base ability scores (ie Heart, Wits and Strength) after character creation? I saw ways to increase skills, combat proficiencies, Wisdom and Valour, but if I start with, say, a low Heart score...can I raise that in any way, or do I just have to accept its low and compensate through levelling up Heart skills and valour?
The elven drawback is balanced out by their excellent cultural blessing (even stronger in the high elf case with +1 to an attribute), and strong cultural virtues. I've still found playing an elf fun, and the same for my elf players.
Wood elves have a weaker cultural blessing (only works in forests and at night) but no cultural drawback, fitting their different nature and character. Appreciate this culture is only available to kickstarter backers so far, but I think it is very safe to assume it will be more widely available later.
2) Raising attributes: so far, there is no way to raise attributes after character creation. However, you can get lots of the effects of a high attribute by choosing the appropriate virtue. For example, if your Heart TN is high, you can take Prowess (Heart) at character creation (or later!) to lower your Heart TN by 1. This isn't quite as good as a higher attribute - you won't have a higher Heart for the purposes of Hope recovery in the fellowship phase, for example. Note you can select Prowess multiple times, even for the same attribute! Admittedly there are diminishing returns mathematically, and a more versatile character is generally more interesting and powerful.
Taking particular Virtues can also compensate for a lower Heart too, for example Against the Unseen (favoured Dread tests, 1d bonus on Dread tests related to spirits, which is a lot of dread tests as Werewolves are spirits too, it is a pretty broad category) for Elves and Strength of Will for Rangers (1d on Dread tests). As noted above, Elbereth GIlthoniel works too, by providing a route to being inspired on Shadow tests (as Distinctive Features can only make Skill tests inspired).