Elf is fine. The difference between most the PC races is mostly fluff pieces, with the key thing that actually matters being the ability score adjustments, and even that's not a huge effect (compare having a +2 to all the bonuses you get from leveling up, and having a +6 item by level 20).
Wild empathy is actually really useful at low level, but ranger has enough stuff in general that losing it really isn't going to hurt you.
Toxophilite's abilities aren't really that great - generally you're much better off using all your attacks to, well, attack (and thereby kill enemies quicker) rather than use them to cancel other attacks - but they also aren't an actual drain on you.
>But I want to outdamage the two handed weapon fighter whose player always powergames.
Well, your main problem here will be that you have to split your stats between Dex (to hit and AC) and Str (to do damage). The way to compensate for this is to pick up Rapid Shot, Manyshot, and anything else that lets you make as many attacks as possible ASAP.
Make sure to take the Deadly Aim feat, and always use it against low AC enemies or once you have stat bonuses / an enhanced bow. It's the ranged equivalent of Power Attack.
>I wanted to be able to shoot through ropes 'n shit.
One thing to keep in mind is that while attacks against objects, etc are okay once you have the right gear, ranged combat maneuvers kind of suck (like from the Ranged Disarm feat), because combat maneuvers in general kind of suck. The only really good combat maneuver is Dirty Trick, which was added in Advanced Player's Guide rather than the core book.
>GM suggested toughness for all characters as first feat because it's newbie friendly survivability. Everybody took it except me.
Good. Toughness sucks. You can get equal results in the mid game just by getting an item of +2 Constitution.