I was never a fan of the kobolds = dragons thing, always preferred 'em being dinosaurs. But hey, that's just me. At least you didn't play it up too hard. The fluff is pretty vanilla, but nothing strikes me as being a glaring incongruity.

Might I suggest the name "silbold", instead of the rather clunky 'surface kobolds'? It draws from similar origins (German Kobold => cobalt, German for silver is silber and these guys have a coloration that indicates, well, silver). Alternatively, a rather benevolent version of the kobold sprites was called a Klaubatermann. Perhaps the "klaubaters" could have a naval tradition (even skyships, if your fantasy is high-magic enough for it). Just some suggestions.

The race seems reasonably balanced mechanically, albeit a little on the strong side. Small size, bonus to Intelligence and Charisma, and a favored class of Sorcerer. It shouldn't be breaking any games, especially without certain shenanigans, but you might want to consider dropping the boost to Intelligence.