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How effective is it to run an archmage and a couple lv 2 mages along with a more aggressive army? perhaps with a unit of swordmasters and a unit of dragon princes? Would a prince become a better lord choice at this point?
depends on the point level and the makeup of the rest of your army and . . . how good a general you are.
Very dependent on your opponent and you should think twice before you try this.
5000p. High Elves
It would be hard to pull off, because magic is very expensive and so are our hard hitting units (dragon princes and swordmasters to name a couple) so you are taking the most expensive of two different styles. Magic is also best used at range, while you obviously want the SM and DP in combat as quickly as possible, so I'd say go for one or the other. A combat army will benefit greatly from a BSB and usually another combat noble to be the general.