"Unfortunately, people tend to confuse the fantasy meaning and the real world meaning and thus believe that every fantasy race is an analogue to a real world 'race'. Which is why I think this is a good move on WotC's part. I do think allowing *every* species to interbreed causes problems (as we've just seen in this discussion) and I think that was a bad move by WotC."

Exactly my point, and One D&D makes it worse. Now, there are no half elves or half orca and such, as if only elves and humans and orcs might be of the same species but other "races" aren't. You can be half whatever you want, implying that all races are a part of the same species, able to cross breed. Devil's, demons, gnomes, dwarves... You can mix and match however you want, implying they are all one species but various races within the same species.