I see Daracaex's point, but like Magnor I like the small bonus to favored classes. I think that keeping the bonus small is key. A single bonus skill point isn't overwhelming, and could work well.

The other option is to give each race 3 or 4 favored classes, so the race isn't as pegged as a single class. For instance, the Dwarf could be a Warlord, Dreadnaught, Cleric, and perhaps one more.