I agree and I disagree.
In part, I think objections to the use of "race" in D&D are a reflection to how society is dealing with race IRL. When race becomes a problem IRL, people fixate on its usage in books and media. When race isn't a problem IRL, people don't mind.
Race is, IMO, probably the best word out of a lot of bad words that could be used. Species? More accurate but not really appropriate to a fantasy game. Genus?
Would we have a Genus of elves, and each type would be a species? Or would we have a species of elves and subspecies of elves? I always dislike the use of "sub-races" it makes sense, but both feels too technical and can lead to the impression, especially in some editions where there is a "generic" elf, that those other elves are "lesser races". Though I generally come to the conclusion that I'm overthinking things.
Perhaps, both biologically accurate and avoiding more sensitive terms, we should use variety?
potential D&D book said:
Across the world, you find that elves, humans, dwarves and most races come in many varieties, sometimes physically distinct from each other and sometimes almost indistinguishable from others of their race."
Or perhaps, a little more clunky, "ancestry"?
potential D&D book said:
Though all elves hail from some unified point in their history today we find elves of many ancestries, each shaped by their culture, religions, and location."
I think that works, and also allows us to talk around the word "race" or "species". Which is really what we're
trying to do here, is talk around either the inappropriate biological classifications or potentially socially offensive terms.
I apologize for not reading 11 pages of posting and perhaps this has been posted before, but here's how the biology breaks down: (I love this diagram fyi)
So biologically speaking, it's possible that elves, dwarves, humans, even perhaps orcs and any other fleshy, two-armed, bipedal humanoid are all derivatives of the same "genus humanoid". Unfortunately biology falls apart a bit at this point in a multi-species setting where they are capable of interbreeding since one of the hallmarks of a species is considered their inability to reproduce and create fertile children. Although perhaps that would explain why half-breeds haven't overflowed the world, perhaps half-elves and half-orcs are infertile? It would certainly solve a lot of problems biologically in D&D. However, the inability to create fertile children is not universally accepted as a differentiation between species.
So I'll reiterate what I said at the beginning of my post: biology and fantasy don't mix well. This is one of those situations IMO.
So I think some of the other suggestions I've seen in this thread are appropriate.
"Ancestry", "heritage", "kin/kind", "varieties". If you want to replace "race" without delving into science, that's where you're going to find your answers.