Posted this in Reddit, seems appropriate here too:
I'm not positive, but I believe encourage will be the best-scaling racial as the stat bonuses should increase as the game progresses, maybe hitting +4 or even +5 primary stats and con, which is damn good, especially with summons. Don't forget about the con, which effectively makes encourage a group heal that bypasses decaying touch and has an overheal effect for full-health chars.
Dwarf racial won't scale, lizard racial is terrible, one-dimensional, and int-dependent even if the damage scaling was increased, and the elf racial might actually get slightly worse as the game progresses if the constitution malus increases. A +4 stat encourage on 4 allies would easily exceed flesh sacrifice in overall value.
The +wits bonus is universally useful, unless you're avoiding wits altogether. And IMO wits benefits most from that small kind of bonus, since the difference between going first and last and +10% damage from +2 primary stat is far greater. Those 2 points in wits mean two less points you need to keep investing to go first, so more for your primary stat, so it basically cancels out the dex bonus for elves. I dislike how wits is kind of bad for rogues since crit chance is basically useless for them, but hopefully that will improved on release
Finally, bartering will always be useful (though still incomparable to flesh-eating).
So yeah, humans are probably the most balanced race.