I would tend to lean toward including non-human races. I would add that, as a matter of courtesy, one should only assign cultural traits to an NPC that negatively affect their own character. Positive traits are less problematic, but can still interfere with character/story development. Checking with the other PC(s) by PM beforehand is probably the best option if one wishes to affect their character.
Besides, if we don't have other races, how am I going to include that half-orc, half-dwarf dragon-riding mage-warrior?
And, no, it's not myyyy precioussssssssssssss. Although it did have me laughing out loud.

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The Unpronounceable Krsqk
"Well, sir, at the moment my left processor doesn't know what my right is doing." -
Freefall