It's still a valid point...I usually play Mirkwood with Galadrim allies on occasion, so we're even.
(Galadriel's guard).
In most games unit upgrades are either not worth it or else over powered. It's hard to find a balance. This is a very similar situation that GW gave us with the WotR unit upgrade that improved the shoot value of a Formation. In practice you only ended up getting a couple extra dice while for the same points you could add an additional Company and have potentially 8 more dice.
I do like the idea of the faster Elves with Gildor's upgrade. A key to Wood Elf success in melee is picking your fights and managing ZoC. When I've played against Goblins and the occasional Dwarf I've found life much easier simply for the mobility difference. To have something similar for a segment of my force even against Orcs or Mannish races could be very good. My understanding of the new army design is that I could bring him in as an ally but don't need to include any thing else from his list, right? He would basically be an independent Warband for deployment purposes?