Fantasy stories become interesting because of differences in cultures, species, powers. If everyone is the same, then there is no discussion, no conflict and no reason to read a story, watch a movie or play a game.
I've been thinking about this too, mostly in normal life though. I'm an immigrant, so am often confronted with benefits/weaknesses of cultural differences, borders, languages etc. We're not so different from each other, but at the end of the day, if everywhere was the same, why would I have moved? At some point the twitter/ crit role/ gen z outcast crowd merges with corporate hr in a vision of equality and acceptance that is so depressingly bland one almost prefers intollerance. Where your appearance can be infinitely varied but those variations mean nothing. I can have horns and my eyes can be on fire
but I still shop at Starbucks, just like you!And in a fantasy setting, where mystery, secrets and discovery are the major escapist lures from the mundaneity of late-capitalist life, having a world of infinite races who are all pretty much the same is dull.