You raised some really nice points there and I like the way you have offered up solutions... its a rather lengthy post so I'll try and keep my responses short

Ranged game powerful = yes, but I would argue High elves are even more so, with their bolt thrower
Treeman character = how about if he was a monster, like giant or bone giant? - but as he is a tree
can move in woods (I know another unique special rule that you are cutting down on)
Issue #1 = agree
Issue #2 = agree
Issue #3 = agree, I thought of the same 2 options as you, cant decide which, perhaps the first option.
Issue #4 = I like you option (does that include 2 shots, for 3 stands, -1 armour)? However don't agree. Many of the artillery (which are a units afterall) ignore armour. I see waywatchers as the "artillery" for wood elves. In fact the only hope they have of punching through heavy cav. With only 2 stands, and maybe a roll of a 6, I think the odds are too low to unbalance the game (my maths is not good, so it might be -1 to armour is more devastating and reliable than the random 6 on a D6).
Issue #5 = agree
Issue #6 = agree
Issue #7 = interesting twist - I like it, rather than reduce the cmd to 9 for everything, and give more a reason for the Treeman (still prefer to see him as a monster, but like where you are going with this)
Spells are an issue (tree singing is pants) allow the woods to move further, 1D6 achieves nothing.
You did not give your thoughts on rule of up to 4 free woods.
Is it me, or does the Albion list feel more "wood elfy" with their ties with nature... wolfhounds, eagles, fenbeast...spells of mists, rain and hail. I know we are trying to tweak the existing list (not mess up what people may have bought) but I think it would have been cool to have less elf troops and more woodland animals as part of the army.