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We're still talking about Legend here?
The planet on which all life was spawned only to be mostly driven away to other worlds?
If we are, there are several options for you.
The one which may be most interesting is to create not a number of layers between gods, but rather to make camps. Each race has it's own beliefs and therefor it's own god or gods. Some may overlap, for who knows if the goblin's god of war and the orc god of conquest are not one and the same.
This way, you'll get a lot of gods which are divided into a good number of groups. There's some overlap between groups, and some races may worship only one, or no gods.
Between the groups, there would be a constant struggle for power. No one group would ally itself with another, for the other gods are 'different', because they belong to a different race. It is likely though that the human gods and the elf gods get along better than the orc gods and the elf gods. It's not unlikely that they argee not to attack one another for example.
As for the balance of power of the entire group, you could make each group as a whole equally strong as the next, or make it depend on intensity of worship, belief or the size of the race.
In each group, you could then create a hierachy including your higher gods and demi-gods.
Following that, you could also proclaim that each group of gods can only influence it's own race directly, while other races could be influenced through the gods of that other race, at a time when the one group holds more power, or has found a temporary gap in the other group's defences.
The main disadvantage is that you'll get so many gods it'll be extremely confusing.
On the other hand, by using the direct influence 'rule', you can limit your talk of the gods to only the one of the humans. Additionally, since the humans there are new to the halfworld, you can restrict it to the ancestor of the main character's earthly god, while making references to other gods as you go along.
If, however, you want to limit the number of gods, you should keep it small. At most, make a distinction between greater and lesser gods, and keep the total below twenty if you can, with at least two lesser gods for each greater one.
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