Managing Races and Classes

[MunchkinMan]

That particular scenario is actually somewhat discussed (choosing to discard your Race is no different than being cursed to lose it) in the FAQ, under Important Note #2 (so it's near the top): You would no longer be able to use your Elf-only Items. You don't have to lose them either, they just no longer provide a bonus. Also any Monster bonuses based on your discarded Race would go away, too.