What steps is Artifact taking to ensure that all schools and races are balanced?

If balanced means equal then we are doing everything we can to not do that. The school system lets players decide what role their character is going to play in the world, and since they can change that decision, it is not necessary that all skills within a school be exactly balanced against all skills in another school. In many cases, skills are present in multiple schools. The races are each different. If you like those differences and think that one racial feature is greater than the others, then play that race. I’m certain that many people will be attracted to Dragons since they are new in massively multi-player games, but the play-style will definitely not suite everyone.