Well the character creator is missing a lot of features I believe? From gameplay pov not being able to choose your starter equipment and neither the variant rules. And Aesthetics of missing faces.
As for the OP itself, me being an Asian fella, whats the issue of allowing me to do a character from other races that I could relate with? Faerun already have Kozakura that is basically Japan in Faerun. So having other races with other cultural takes is not far streching it. I understand the cultural root of the Folk being European, but thing change or it would be a constant copy pasta of Tolkien, changes like this for example allow you to be a European heavily armored knight to fight Onis and other Folk creatures that with a ultra conservative(in the sense of no changes not the political spectrum) wouldn't allow to.
This is not a matter of diversity and inclusion really, at least not to me, and I am of mixed heritage, I do not look caucasic. To me it is about building an immersive world that makes sense, and if you are going to have races that are not human, they should be represented in... Well. A non human way. Otherwise what is the point of them. They are not supposed to look caucasic, black, indian, asian, or anything other than their own.
Every time you take a fantasy race, and you strip it from the things that make it unique and different, and humanize it, well... The world is less rich, and less interesting.