Yes, there should be much more racism and racial conflict.
I'd understand people's concerns if the game would portray light skinned humans and darker skinned humans as being different. But that's not the case. Instead we have fantasy races with no real world connection.
I mean, Gith and Dragonborn aren't even mammals. Gith are evil alien from outer space. Dragonborn are humanoids hatching from dragon eggs. Tiefling are the offspring of some human who made a deal with the devil. Drow are evil spider whorshippers who can live 10 times as long as humans and see exterminating entire families as an act of faith towards their goddess. Duergar are slavers who live in the underground and think that the purpose of any race apart from their own is only to work as slaves.
All of them should be met with hostility or fear when they interact with humans or other good aligned races.
I agree 100%
Games these days are lacking good storytelling, because writers are afraid everything will be offensive to someone. Like... well, OP being offended by everything in the game, which is a proof enough on this forum by their posts.
We're sadly past good old days where story was a priority, not the concern that someone who doesn't even play a game will be offended.
I agree 100%