You are correct that LA is generally a huge handicap, especially so for casters.
Unearthed Arcana has a way to buy off LA with experience (p. 18); for +2 LA you would pay it off at levels 6 and 9. The exact rules are available in the SRD.
Another solution is to use Negative LA to be able to start playing at level 1. In short, you start as Drow (LA +2) Wizard (CL +1) with -2 LA for an effective ECL of 1 and then buy-off the 2 negative levels.
And yet another solution is to use the Savage Progression. The basic idea is that you start as half-a-Drow at level 1, become a full Drow at level 2, and takes your first class level at level 3.
The latter two solutions allow you to start as a level 1 character, however Negative LA lets you being a Wizard from the get go. Both have an equivalent cost, XP-wise.
The first solution is more suited when play starts at higher-level, since by buying-off LA you can catch-up to the others.
If you only care about being a Drow for the flavor, as I guess from your willingness to trade off a racial ability, you might also be interested in:
- The Half-Drow race, presented in Races of Faerûn, p. 62.
- The Lesser Drow, presented here, which is basically a specially flavored Elf (with Darkvision and Light Blindness)
Both of these races are LA 0, and therefore avoid the complications of LA.
As for Light Blindness, it is not necessarily that bad, depending on where your campaign takes place (dungeons are dark, forests too, ...).
You may be able to avoid Bright Light by simply staying out of the sun. If this is not sufficient:
- Shaders (1 sp), Races of Eberron, p. 103, cancel the effects of Light Sensitivity (a lower of Light Blindness)
- Sundark Goggles (10 gp), Races of the Dragon, p. 123, cancel the effects of Light Sensitivity (a lower form of Light Blindness)
- Blindfold of True Darkness (9,000 gp), Arms and Equipment Guide, p. 130, make the wearer blind (thus immune to any effect based on sight) and grand Blindsight 60 ft.
- Lenses of Darkness (12,000 gp), Pathfinder, cancel the effects of Light Sensitivity and Light Blindness
Note: an obliging DM might grant you that items that cancel out Light Sensitivity would reduce your Light Blindness to Light Sensitivity, making you only Dazzled in Bright Light, which is perfectly fine for a Wizard.
- The Penumbra cantrip (0-th level spell), cancels Light Sensitivity and Light Blindness for 10 min/level.
See also What methods are there to remove, prevent, or otherwise safeguard from penalties from Light Blindness? .