I get where your coming from....but i would be reluctant to agree with you.
<img src="/ubbthreads/images/graemlins/div.gif" alt="" /> is all about freedom imo and having restrictions on certain races would limit that freedom.
I do agree that some races should have advantages/disasdvantages....so if your an elf and go meet another elf your reputation would be +10....if now as an elf you were to go and meet a dwarf...your reputation would be -10 <img src="/ubbthreads/images/graemlins/biggrin.gif" alt="" />
Maybe as an elf...you would get automatically 1 bonus point in agility every 4 levels?