It's funny, becuase I'd much, much rather have specific dialogue line options related to my background, than I EVER would having ones spurred by my race, of all things.

Indeed, pretty much NONE of the race tagged dialogue extras that I've encountered so far have felt good, or really landed well at all. They range from "I'm actively being racist if I say that", to "That's not even relevant", to "That's a perfectly reasonable thing for anyone to say - why is it race locked?"

Most of the halfling ones are things that literally any character of any race might very well want to say. I've even seen people on the forum requesting that extra lines be added to certain sections of the game, seemingly unaware that those types of lines do exist - if and only if you are a halfling. (Apparently only halflings could ever possibly want to diffuse tensions or resolve arguments through peaceful mediation. No-one could ever be a dumb farmer-yokel other than a halfling, too). They're really very poorly placed and handled at the moment.

I saw a half-elf one earlier... where my character apparently recognised Shadowheart as a half-elf (honestly, she *barely* has any elvish tells at all), and was suggest some line about suggesting that everyone was going to think we were cousins. Never mind that whatever flavour of half-elf she is was obviously a completely different one to me, and also that, after humans, half-elves are fairly common, and no-one other than someone overtly judging people based on their race as a first call, would ever be inclined to make any sort of assumption like that...

Race tag dialogue lines should be about culture and history that a ember of a certain race might wish to share or add to a dialogue, or a particular insight that cultural background might offer - they should not be the fuel or fodder for further racially-motivated commentary, or for standard conversation lines that anyone might reasonably want to say.