Bonuses may be contradictory but they are roleplay and as a tabletop player and gm, that's what matters most in a RPG I think.
Sorry, that's a completely lame cop-out. "So what if it's crap, just think of it as ROLEPLAYING!"
So as I said, unless you're a crazy min-maxer, it's no big deal. (And if you are, It must not be fun playing only elves on your dps characters for that sweet, sweet +25% damage +1 AP.)
And here's a strawman fallacy.
There is nothing "min-maxy" about pointing out that Dwarves, unlike three of the other races, are the
only race who gets those contradictory bonuses. There's nothing wrong pointing out that is a little unfair - even if the bonuses don't mean much eventually.
The Dwarf can keep its +2 STR, but the +1 Sneak should be changed to something neutral.
Yes, it's minor, but this is a balance issue, just as Lizard's very poor racial skill Fire Breath is a balance issue, just as the Elf getting the most powerful racial Talent and the most powerful racial skill is a balance issue.