It's been a good few years since last I entered a tournament, and never tried to be especially competitive. To get some games in more often, I'm looking at attending some tournaments soon, potentially with my new Mirkwood army. This first list has one warband of old Wood Elves, simply so that I can field an army a bit sooner, will get another box of Rangers/Palace Guard later.
Anyway, the list:

Thranduil, King of the Woodland Realm
2 Mirkwood Cavalry
6 Palace Guard, shield, spear
2 Mirkwood Elves, glaive

Tauriel
9 Mirkwood Rangers

Legolas, cloak, armour
4 Wood Elf warriors, bow
8 Wood Elf warriors, spear

699pts, 34 figures, 17 bowshots, 9 Might

Cavalry mostly because they look great and to grab objectives (originally had Thranduil mounted too, but it'll be a while before that conversion is finished - took a second glaivElf instead). Plenty of spear support to go around. A variety of flexible figures: shielding with shields, glaives or Wood Elf spears, extra potential attacks with Rangers.. some interesting stuff in there.
Worryingly low numbers, but that seems normal for these Elves - it's just that the last time I used Wood Elves, it was pre-warbands, so a force would be Haldir and 48 Elves (in 500 points!).
Finally, may drop a Ranger and glaiveguy for a banner if the scenarios make that an attractive option.

Any thoughts on improvements, tactics or other words of advice?

at 500pts you get mostly around 22 to 26 models, for 200pts you get like 10 more along with another cheap and nasty elf heroe, I dont see nothing wrong with numbers as you got C5 minimum anyway.
If youre so afraid of low courage get a palace guard with horn and all your army will get C6 (heroes 7)

I would advice you less palace guards however, 2 of em with jsut 1 upgrade its worth 3 of the regular elves with a 2pts gear on it (mirkwood elves that is)
I would keep palace guard to minimum numbers to be effective like 3/4 with shield in most cases (to benefit from shielding + elven blade giving it a nasty and nice option to bar way to fight 6s heroes or monsters nearby thranduil and still have 4/6 chances to win combat to your side.

Alot people been sending alot S4 armies so the palace guard will drop as good asa random elf with shield.
I would suggest keeping their role simple.

3 palace guards with shield
2 mirk elves with shield
5 mirk elves with glaive and shield(if you really want spear and shield option for 11 rather than 16)

If Im not mistaken you saved up 28pts right there. remove 1 glaive guy and its 39 pts for a palace guard with a banner making the total of 700pts on the spot with that last point of your 699 list.