Sorry to disappoint you here, but let's have a look at some math. I am assuming Improved Crit:Slash, blank greensteel weapon, bloodstone and a damage modifier of +30 (str + enhancements + items (like claw set) + feats (like Weapon Spec) etc..
https://forums-old.ddo.com/forums/showthread.php?t=299620 had +50 and more, so 30 is rather low.
\begin{math}
Elf: 1*0 (no hit) + 13*(4.5 (avg damage GS Scimitar) + 30 + 2 (elf Enhancement)) + 6 * 2 * (4.5 + 30 + 2 + 6 (bloodstone)) = 984.5 damage on 20 hits vs normal trash mob 0% fort.
Human: 1 * 0 + 15 * (5.5 (GS Khopesh) + 30) + 4 * 3 * (5.5 + 30 + 6) = 1030,5
\end{math}
So a human will do 46 damage more in 20 attacks against an elf who invested 6 Action Points into damage. With a +40 damage modifier the difference is 1234.5 (Elf w/Scimitar) to 1300.5.
Also a human paladin would look like 15 Str, 15 Dex, 14 Con, 16 Cha (and putting +1 human adaptability in str (2 Action points)) is getting 20 more hp, 2 skill points instead of one, human improved recovery, human versatility and more. The drow also has +1 Skill point and Spell Resistance.
So, concerning paladins, elves are a flavor race.
Regards Tore