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I don't know if Tauriel is any good, but assuming the Wood Elves are largely the same as the old LOTR ones stat-wise, the elf list looks good too.
You've got a lot of good shooting in the Rangers (do Wood Elves ignore the 33% bow limit?) and the Palace Guard look solid. The elves will be less durable but more mobile, and with the power to whittle the enemy down before they hit you.
Funny enough, the two will combine well at higher points. Putting the Rangers in with the Dwarves when you hit 800 points or so would give them some mobile shooting and a faster element, and the Dwarves make a solid defence for Elf archers. So if you can help it, I wouldn't sell either, the two armies slot together very nicely for a 1000 point list.
If you have to pick one, though, I'd go with the Dwarves, purely based on the models.
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