Hi again...I play an elf champion...and 'racial' stats mean very little in this game. The decreased 'regen' is only out of combat by the way. Elves love and live to fight. So no it really doesnt matter later on.
Every race has thier own downfall for stats. Thats why there are
Traits that you can get throughout your travels and change your various stats somewhat. Plus there is alot of gear that has stats.
I've met guardians who have worse Morale (Health) and Armour then I do...and I'm not even wearing a shield.
Yes there is dueling, you can select another player and right click for a drop down menu and choose to "spar" with them. Monster Players can also do that.