Yup.
There's quite a lot of topics that simply don't get handled very well in stories simply because of modern day cultural climates and the recent trend of people getting offended by any little thing that doesn't even impact them.
Races and their culture are often never truly explored and when it is it's often just "They're just humans that look different" with the occasional trope of "Elves live in giant hollowed out trees because nature goddess or something".
It's one of the more disappointing aspects of fantasy settings, there's so much potential for other races to have completely alien cultures to explore.
I think that’s a bit overly simplistic. The game takes place 100-150 years after BG1 and BG2, and I like that a lot of races, particularly when you get to the city, seem to have integrated and diversified the city. The Goblins and Duergar live in isolation, so I can see why they stand out. Both the Iron Hand and Gondian Gnomes are second class citizens in Baldur’s Gate, so they feel pretty distinct as well.
I think it would have been nice to still maintain a bit more distinction to give a sense that even though the city and all its different races are more integrated, they still carry some cultural traditions or beliefs with them. Overall though, I like that this world doesn’t feel so stuck in the past.