To add to the chaos, they could have a disadvantage on the lines of they can morph upon physical contact, but every time physical contact with a living being occurs, there is a chance the creature will morph into the being it touched. As level increases, the resistance to morphing is easier.
As I see it, this is a race, not a class right? It seems that the race has few disadvantages, if any. Espacially if the character is a 20th level (choose class here) AND is a shapechanger. That is insane. Imagine a 20th level fighter who can morph into a dragon at will. Or a 20th level mage who can do the same. That is a damn powerful character especially in comparison to a 20th level of any other race.
I think level restrictions might be needed, such as the drow being actuallky level+3 (i.e. a level 1 Drow is really a level 3 character)
Just some thoughts since I can think of no other playable race that gets bonuses as it levels.
Shapeshifter Race, Newly Revised
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