The option to choose characters from different races is a nice extra in MM7. However, the concept has only little effect on gameplay: initial statistics differences (which can quickly get evened), natural resistances and targeting by certain foes. We gamers were soon calling for more: additional races as well as more racial aspects in the game.
A large number of new races have been suggested, including ogres, centaurs, gnolls, dendroids, gnomes and even dragons. To keep all party races humanoid seems to follow the tradition of Might & Magic best. Within the world of Might & Magic, including Heroes, vampires, trolls and gremlins appear to be excellent candidates. To these I added halflings, not only by popular request, but also as not to tip the scale towards the uglies. This would bring the total up to 8 different races. With the humans as neutral, a matrix of 7 races and 7 statistics makes a perfect fit. Their initial stats could look like this:
Race Might Intellect Personality Endurance Accuracy Speed Luck

Note that dwarves are no longer lacking in precision. It is unnatural that they do in MM7. I am limiting the bonus points to 32 to divide over the party for a party size of 4, 48 if the party size were increased to 6. This is while striking the double counting for fields of excellence, since that obviously doesn't work well in MM7. First, it limits the choices to the obvious, and second, it makes humans a bad choice. I'd set a maximum decrease for any statistic at 2, and a maximum value for all stats at 35.

I also put some thought into increasing the importance of race. First of all, it is common knowledge that for instance elves and dwarves have a natural dislike of each other. It would be logical if a party consisting of two elves and two dwarves would have trouble staying in a good mood. I think they'd be quarreling most of the time! In fact, all races have their antagonists, and it is always both ways: elves and dwarves, humans and vampires, goblins and halflings, gremlins and trolls. So a party consisting of one human, one elf, one halfling and one troll would be fine, but there should be a penalty for including opposing races. One way of doing that is to decrease the number of bonus points at party creation.

Further, I think there should be an influence on reputation. Characters should get a better deal from shopkeepers of the same race and should get more information from peasants of their own race as well, maybe even an extra side quest. A party of a single race would do excellent in one part of the country, maybe gain access to some nice artifacts, but miss out on a lot elsewhere, whereas a mixed party would get more side quests but would never make a fantastic deal.

Finally, races could have a fondness for one particular weapon, adding for instance one full level to their skill, and feel akin to one particular field of magic. The latter could go beyond having merely some extra resistance, they could perhaps be able to learn a secret spell. I think you can imagine what the vampire's secret spell is!

RaceWeapon bonusMagic bonusSecret spell
DwarfAxeEarthUnlock door
VampireDaggerSpiritSteal life
HalflingSpearMirrored pathHide in battle
TrollMaceWaterSummon boat
GremlinHurlingAirCreate chaos
Hurling is described in the skills section on this page.