I'm Pretty sure that a "Kitbash" is a mixture of 2 'right out of the box' sets.
Example:
"I bought a new Lego Y-wing and Lego Rogue Shadow. I kitbashed them to make one sweet jet."
Just a guess.
We already have Humans, Dwarves, skeletons and Orcs. I'd rather have them build off of the current races than add new ones.
Besides, elves are pushovers. |-/