The villains of my setting are outright fiend or aberration worshippers.
I have 4 tribes of orcs there and only 1 is outright evil due to willing infernal pacts. The ratfolk are silly evil though.
Having your villains be non-serious evil villains is fine if you due the work to avoid real work connotations. The issue is old gaming was often story less brainless silly when it came to villains. And when you don't care about villainous motivations, it is likely you didn't care about not being insensitive.
That's how Games Workshop got caught up. They just associated races to the most exaggerated stereotype of the region of the Earth Analog world they created.