Nice work so far! I'll say right away that I'm generally not a fan of high-magic settings, but I like this stuff. It's cool that you foster teamwork in spellcasting. The setting's got a kind of Airbender/Final Fantasy/Zelda feel to it. In particular, I love the take on elves. I've kicked around a very similar idea a few times.

Some thoughts:
There are Humans, and then air, earth, and water races. Any fire races? The Nomon seem like they might be, but it isn't explicit.

As far as format is concerned, I think you would benefit from some revisions. I figure this is a rough draft, but it's worth a mention anyway. My own preference is to lay out the geography, either the nations or the races (whichever is more unified), religion and magic, then anything else that's germane.

That's all I can think of for now.