
The magic bonuses for sub races have a few problems. They contribute to the +12 modified stat cap, they do not give access to higher spell levels for casters and modified intelligence does not give additional skill points.
Perhaps the magic bonuses could be replaced with the appropriate great stat feats. For example, a half ogre would get +2 str from being half orc race and then Great Strength 1 and 2 as well as Great Constitution 1 and 2 for being a half ogre. The penalties would still have to be applied magically as for some reason there are no feats that lower stats.

This would also have its downsides. The character would probably get picked up by the "legal character" check. The character would have less great stat feats to take in epic levels. The penalties would still be magical.
I have no clue how the legal character checks are done on NS4 so this area would need a response from someone more knowledgable than myself.
Not many classes take all 10 great stat feats. Arcane Archers and Assassins with dexterity, Bards with charisma and Shifters with wisdom come to mind. Even so, I personally feel this is a small trade off for having your base stats increased for subrace rather than magically increased.
As for the magical penalties, at this time I do not think much can be done about that. Is this concept even possible? I have no idea.

Thoughts?