Yes the elves get a buff to MP generation. I tried MP generation for the first time a few minutes ago and 1:1 schools and 1k wizards got me 600 MP. Luckily that MP successfully cast Blessing that I needed, while I failed my last blessing attempt with 900 wiz - so I'm not sure if it's more efficient to cast with wiz or create MP and then cast with that. I've failed with MP using 6:1, so this was a surprising success casting with <5:1. But as Keeper has said, casting with MP is equivalent of fully teched out elf with 1:1 schools, so maybe I just have bad luck with it sometimes.
The racial resistance does not factor in on beneficial spells (MP spells as well), only for offensive spells.
