As much as several cool races are in theory, it does eat up a lot of development (e.g., making armor models for different races). But playable undead are coming. Five races is pretty decent overall.
Regarding the way CC works, it is problematic in some ways. Overall, I like how it's not really random anymore, but in some ways, it makes CC even stronger than before, since you now reliably finish fights with CC instead of semi-reliably initiating with it. It gives a chance for enemies to put some hurt on you before they get stunned, at least, but it's usually not that hard to strip the armor.
Maybe it's a numbers problem, and increasing enemy armor and reducing vitality will make the game even less CC dependent, though then many abilities will feel useless for much of the fight. Maybe increase armor, but only hard CC (stunned, charmed) is blocked by them, and stuff like bleeding and burning have a chance to be resisted with armor up, but can still go through sometimes.
Maybe armor reduces the efficacy of status effects, but doesn't completely block them. So stunned with magic armor active could reduce AP recovery by 2. Bleeding and burning wouldn't deal as much damage with armor up. This would set up an interesting dilemna of wondering whether to use an effect earlier in the battle for the upper hand, or save it for after armor breaks for a more devastating effect.
Maybe willpower and bodybuilding need to return, and enemies (and players) can have a chance to resist effects even after armor is down.
I expect Larian will definitely tweak the system, but to what extant, I don't know. I do think it needs at least one significant change.