Non-human races should look non-human, because they are non-human.
Extra human presets are are good idea I think, because we often do want to look like ourselves (just better, because I don't play games to look like a middle aged gamer with disabilities, you know? This is my fantasy - my escape from reality).
Extra half- or part- human presets too, then we can look like ourselves but just a bit "other".
But, for those of us who just want to roleplay the other, then let the other be an option. it's fantasy. We're here because we like fantasy. Let us be fantastic!
Now-a-days, in a modern games, there's no reason not to have both. I love the effort Larian have put into the motion capture, and facial expressions, but the fantasy aspect is important too, and perhaps a little neglected.