Volo's depiction in his titular book makes me hope I can Eldritch Blast him when I finally get around to BG3.
BG3 lets you do just about anything (with consequences) so have fun with your Eldritch Blasts. (Btw, I recommend always picking Repelling Blast, as it is one of the greatest insults you can toss at any enemy.) Fus Ro Dah!
Volo is certainly... quirky... with absolutely no respect for truth. He's like a tabloid chronicler. Never trust the contents of a book that has Volo's name on it. (By this rule alone, Monsters of the Multiverse is a better tome, and more accurate lorewise, compared to Volo's Guide to Monsters.)
Regarding the OP, Elf lineages are not inherently racist, even if D&D has very questionable lore in the past. New books can remove that lore and new players don't need to be subject to it going forward. We all know the old lore was problematic. I recognize that a big reason why someone might consider it racist is because of what they think it means for mixed bloodlines. This goes back to the Origins UA argument.
Historically, it was a problem that "half-" races were being depicted by negative societal racial titles as Half-breeds hated by both sides, or being primarily the result of non-consentual interactions with raiders. Relatedly, there being inherently evil humanoids, or inherently evil humanoids being depicted with dark features, was also a problem. We as veteran players don't have to "forget" those things, rather we just have to recognize and understand why we are abandoning them, and are moving forward without them. It isn't helpful to hold onto old problematic lore rather than leave it behind and create new, inspiring lore.
We do have the terminology argument, though. I would assert that it is not wrong to use the "Fantasy World" reason to change the rules of that universe compared to ours, and to redefine some terms to mean something different (as long as the word itself is not problematic in our real-world societies). We can abandon words that themselves DO mean something problematic or triggering to real world players. The MOST IMPORTANT THING for a game designed for an audience is to serve the audience, not the game itself. The game and its universe isn't real. Players are.
The word "species" does not need to have the same scientific meaning as it does in our real world when it comes to breeding. We don't have a plethora of non-human humanoids that can breed with humans, so we don't have an existing recognizable taxonomic word for it, so we need to redefine one. "Race" has become problematic (thanks a lot, racists), and there are very few other words that can capture the concept like "species" does. The designers can't really invent a new word so it looks like we have to accept an existing word. The word "species" existed long before lots of recognized science, and it doesn't need to be held to a strict real-world "scientific" definition. "Lineage" also isn't problematic in its usage and it doesn't help to try and invent problems.
Also, species mechanics are not the sole factor of defining a species or a mixed species. In a fantasy world, it's fine for the mechanics to take after one parent, and everything else, from features to culture, to be as diverse as the player desires. It isn't a One-Drop Rule thing, or an otherwise racist design plan. Those accusations are baseless attacks. "Mixed" species are fine with just about everyone. They aren't trying to be erased. There just needs to be simple rules to offer them as options. However, the "Half-breed" terminology is icky (and usually technically inaccurate in a multi-species mating environment as "Half" equates exactly to 50%) and should be abandoned. As an alternative to "Half," "Mixed" as a term isn't icky or inaccurate. Also, "-kin" (like Elfkin) isnt problematic if someone wants to make a specific mixed elf/human lineage.
After abandoning old problematic race lore, it is not racist that a fantasy species created or mutated by Greater Powers has multiple lineages (subraces for people stuck on the word "race") that have different abilities. When a High Elf and a Sea Elf mate and have 2 children, those children can be considered "mixed" even if their technical "species" mechanics lean toward one of their parents. One of the sibling's characteristics can even lean towards their other parent, so the blood siblings can manifest differently. That's fine. It's no different than one sibling getting sorcerous powers from a Draconic bloodline, but their other siblings not. Every character is unique (some say even planned or intelligently designed by Greater Powers, and if we want to break the fourth wall, the Greater Powers are us, those who design and play the game). If the Greater Powers want to build-a-bear, GREAT! Make those rules and use them. But it's untenable as a baseline design for a core game. That is too large of a project for the PH.
As another example, an Air Genasi and a Fire Genasi may mate, and their progeny could look like either parent, or have a mix of their features (they could even identify as an quasi-elemental Ash Genasi, if that means something to them), while manifesting the mechanical attributes of one of their parents, and there doesn't need to be a cultural or racial stigma tied to it. That's just how the system works. It's a fantasy world that is not real. It's in our heads. If you are convinced that there needs to be a stigma, that is 100% in your own mind.
I think we just need to think about it in a fantasy Intelligent Design perspective (even if it is on a word budget due to literal design limitations).