Id guess the idea elves or dwarves or dragonborne need to somewhat represent the cultures of earth is not really an issue for anyone. We can have each fantasy race vary physically as if we're seeing some of their separate cultures. Maybe that's what Larian was trying to do.
But I dont think Larian would be in trouble if each fantasy race simply had their classical DnD fantasy appearance. Humans, though, should definitely represent all of earth well. And half-races should somewhat, too.
