The problem with DnD isn't so much that certain races are "evil", it's more that the whole thing evolved as a very simple heroic fantasy setting. Almost every race or monster started out as a simple stereotype, either derived from historical mythology or culled from literary works.
I'm sure some of the DnD authors over time have been influenced to some degree by both conscious and unconscious bias in their writings and inventions, but I'm sure most of the perceived issues are simply due to relying overmuch on the eternal fantasy dichotomies good/evil, law/chaos, civilized/primitive.
Most attempts to relate DnD races to the Human population of the earth don't really stand up. The Drow, for example, have dark skin, but in a different palette to any tropically-attuned humans, pale hair, but in a different palette to any temperate-attuned humans, and facial features that are generally similar to Europeans. It's not clear who it might be insulting to depict such a race as evil.
It would be a shame if all DnD fantasy societies, of all races, end up feeling the same, rather than each society, of any race, being based solely on it's history, geography and current political circumstances.
