First thing's first! Hello folks! Love the game!
Now onto the questions...

I'm hoping to sell some people on using this game to do some world building... It seems very capable, and it's the first FRPG that I've seen that manages to do that
AND be fun to play. The new crop of games seems to do one or the other, but not both. I haven't played it yet, but looking at things like action dice, I'm guessing the play is pretty dynamic.
I'm not fond of attribute penalties. Won't ramble on much about why, but something I was toying with doing was allowing players to negate one -2 penalty. Thus allowing... a non-stupid wood elf.

I don't want to throw balance off though. I could just offer everyone a +2 to one attribute, but I don't want to encourage people to go for the 20 in one stat. My group is a fairly RP heavy and mature, but a flat +2 seems a bit heavy in the other direction...
Hopefully I've explained myself well enough! Ideas?