If all races started in their specific home cities and we used lore and not just in game mechanics then gnomes win hands down. They are capable of constructing robot armies and they have the superior navy. Like wooden ships would just get chewed up by a fleet of Icebreakers. It isn't really stated if Breezeboot made the gnasher or not but if that is gnome tech they also have high end energy weapons. They have access to all arcane schools of magic, cleric, warriors, rogues and they can be further kitted out with tinkering and jboots/tboots.
They easily win the war of Faydwer. Elves fight each other and gnomes sweep up the rest. Kelethin is turned into the world's largest lumberyard. They send their robot soldiers into Kaladim to claim the mines. Dwarves are strong but there is no possible way they can hold off against the magic and technology of the Gnomish Empire. With Faydwer secured they have enough natural resources to last them the length of the war. All they need to do is fortify the island and turn Faydwer into a fortress and continue to build robots, weapons, and ships. No other race can match their technological and resource advantages.
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