I would prefer the NPCs to have clear likes and dislikes up to and including specific races like in BGII personally; that would help define the character instead of a "...eh, whatever" attitude, however I understand you can justify the current thing as "This playthrough they're bi/homosexual and into halflings, the previous one they were straight and into elves". I don't really think there's a 'right' or 'wrong' one for this; you can make arguments for and against.