One DnD is actually increasing the distinctions between races.
So a 40 lbs gnome is not generally as strong as a dragonborn or an orc in One D&D?
As I understand it, some of the racial features are decent enough but those are really the only distinctions between the races and they're all trying to operate within a similar power budget. Thus I would hardly argue that OneD&D is actually increasing racial distinction and uniqueness.
Also, the Dwarf signature role is that of a fighter, but what racial synergy do they have? +1 health and resistance vs poison? Is that even a bigger boon for fighters than it is for squishier classes?