I mean, I made mine Italians and they worked out fine. There's something fun about a race who isn't the brightest or most patient forming the beacon of old world culture ages ago.
Then again I also kept Drow evil mainly because they're a group of Elves in my setting that rejected losing to the Orcish Empire in setting and losing their own massive empire and human slaves. They and their descendants are still the big mad about that.
I tend to just make villains over races, but it's not like there weren't evil societies. Demon worshipping cannibals. Secret Cabals out to prove alignment is bullshit and trying to go beyond that. Crazed holy warriors out to force their Manichean views on things. I don't usually use race for that thing, but I sure as hell have enemies out there.
Sure, that's a great way of doing things. It's not the issue, though. My beef with the current crop of "actually proud and noble" formerly villainous races, and the push to outlaw fantastic racism, is that it sacrifices any depth the world might ever had for the sake of being inoffensive to people who wouldn't be playing the game to begin with.
This whole trend in fantasy to argue
"everybody is the same and everybody is treated equally or you're a big mean racist" also cheapens both characters
and narrative devices, too. If "race" is just a skin without any stats or rules (read: without any in-universe biological implications), seeing an ogre archmage or a goblin as the pious leader of an order of paladins
doesn't mean anything. There's nothing special about them anymore, compared to their peers. Meanwhile, in a setting where ogres are widely known for being brutish and dim, and goblins are considered by default to be sniveling and evil, both those characters would have big huge neon signs floating about their heads saying "THIS GUY IS SPECIAL".
Meanwhile, in a setting where elves and dwarves have a longstanding rivalry, an elf and a dwarf adventuring together could be an interesting exception to the rule as two mutually-respectful adventuring partners, or they could be an endless source of fun banter sniping at each other as they go. But if people are not allowed to dislike one another for petty reasons, none of that is possible. There's no space to grow, no Very Special Episode where someone learns the error of their ways by witnessing something that goes entirely against the essence of their grudges. And no one is special either.
Another thing is that everybody just assumes racial/national stereotypes are universal. Like, in a pre-mass communication world, somehow people have exactly the same opinion of everybody else no matter where they live. Which is both unrealistic, and
extremely lazy writing. Shit, even in the real world, with our ease of communication, things can be wildly different depending on where you live. Over here the Happy Merchant is a Jewish stereotype, while as I understand it in some places of South America it's also a
Turkish stereotype for some reason. Here in America the French are widely mocked for being effeminate and surrender-prone, while in continental Europe there's more an consensus regarding the French being annoyingly stubborn and arrogant instead.
Here's an example of how this thing
should be done in fiction: if there is a region being terrorized by a cult of cannibalistic halflings, the people of that area will be at the very least extremely mistrustful, and at most downright terrified, of halflings in general. People leaving that place might bring with them their prejudices, their fears, and their tales of Aunt Marjorie being roasted and eaten, and those tales might even spread and affect widespread opinions of halflings if given enough time. It could generate rumors and legends, and sow mistrust or even be used to justify massacres and purges in a completely different part of the world.
Usually you see negative stereotypes being propagated, but you can also have positive outlooks. If for some reason the orcs in one region of the world settled down and built cities instead of being nomadic marauders, and then that region had its own, more muscular version of the Islamic Golden Age, a lot of non-orcs in the area would be quite warmly disposed towards them, and find outsiders' views of orcs as being savage brutes strange.
I don't have a closer for this argument, I just think that these people are fucking lazy and trying to hide behind misguided self-righteousness, and that their laziness actively detracts from the hobby. I don't want a newbie to be afraid to explore character concepts because someone on twitter pitched a fit after their totally-original-do-not-steal gay elf bard got called a "knife-eared nancy" by the dwarf inkeeper when he failed his performance roll.