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I can see Pixie Dust as a daily racial power. But as is, it pretty much eliminates the need for rope or athletics checks for moderate climbs/crevices. All you need to do is keep waiting 5 minutes per party member.

Also, it's silly. I love how they made it in such a way that screams out "yeah, we can't be bothered to think of better combat mechanics for tiny adventurers, so we're just winging it with the rules we got".

I'm on this side of the fence, kool-aid drinker that I am. Saying "y'know, like a small character" is can-of-worms deflection at its best. There's absolutely no need to make PC combat any more complicated.

As for Pixie Dust, I see that as the standard 4e "skill it or it takes longer" and short-resting between each ferry will be a much greater time-cost than casting Knock over making a Thievery check. If you're in a hurry, you can forget about abusing this. It's good for short tactical flight and sending the rogue someplace to tie a rope. The immediate DM block to this is 7-square gaps or cliffs. I'm almost reminded of the player flip-out when we learned eladrin got teleports at level 1.

SCROLL DOWN. Ignore the temptation of reading all the Drizzt crap.

Pixies should have Vulnerable: disbelief. As a standard action your allies can clap their hands and allow the pixie to spend a healing surge.

With those stats, y'know what would be a natural class choice for Pixies? Vampire.