I have an objection to it. Firstly, it's not the rule's fault that you have too many woods, you are free to make agreements with your friends to include whatever terrain you like in your selection.
Secondly, they're Wood Elves from Athel Loren, I don't think one or two little collections of trees in the middle of nowhere really count.
The Dwarf dispel dice thing doesn't bother me either (I am a Dwarf player though

) While it COULD make more sence that the dwarfs get MR instead of the 2 DD, it could make the magic phase very difficult for the Dwarfs. Runesmiths are the only source of DD after the basic dice are considered and Anvil of Doom aside they are pretty useless. Unlike the normal Wizard they provide no tactical assistance to the army and they can not affect anything outside of CC. Enemy characters can usually beat them easily in combat. So in order to have any real magic defense they would have to spend a lot of points on characters which have limited influence on the battle field. Obviously the 1 extra DD for each unit is useful, it is a lot of extra point which will be wasted unless the enemy casts a single spell at each dwarf unit (unlikely). Furthermore Dwarfs major weakness is the movement phase, having a lesser defense against move spells could be drastic to say the least.
Now, the fluff reasoning behind this is that the large gathering of dwarfs stiffles the winds of magic. In a similar way to a large amount of death attracting the wind of death. So it still makes sense. In fact I think it should be 1DD per 1000 points. at low points values the 2dd is overpowered and at higher levels it starts to fall short, and it makes more sense with the fluff. but hey that's me.
The only rule that really annoys me is the HE ASF. I like the concept but I think it should work similarly to the pike special rule. ie only on the first turn of combat, only to the front, and magical asf overrides it. This explains "skill" a little better imo (ie training and skill rather than a magical ability) and still enables tactics like flank charges to have full benefit.