Potential unpopular opinion: I really dislike the Mos Eisley/Pirates of Dark Water style anything goes attitude for PC ancestries. At some point it's just a bunch of bad rubber masks. A few species with defined, deep cultures (a few each, even; monoculture is bad too) is much more preferable. You can actually tell interesting stories with that.
And, yes, you can kindly get off my lawn.
Potentially EVEN MORE unpopular opinion...
If (general) you ever feels like any of these races are just "humans in masks"... the primary reason for that ISN'T due to the way these game mechanics are made...
...it's because the players at your table are humans, and they just
ain't very good at roleplaying alien races.
Even now... your player playing the dwarf is basically acting out a hard-drinking Scottish person who likes rocks. That's the extent of their "dwarven" roleplay. They are acting as a hard-drinking Scottish rock-lover
human being under the supposed guise of "dwarf". And that had nothing to do with the game mechanics.
And try asking a player at your table to
really get into the mindset of playing an elf who has already lived for
400 years operating next to a couple of these 23 year old "human" PCs. How exactly are they pulling that off in and around all the combat and exploration scenes? What are they doing, or even ARE they doing anything to play that reality of having lived centuries and needing to interact with these pissant humans? My guess is... they ain't. Instead, they're playing a couple very specific
human personality traits that are "stereotypically elf"-- like they are arrogant, or aloof. But at the end of the day... the players are just playing arrogant humans, not some mystically alien, exceedingly long-lived race.
And this is precisely why the game mechanics really don't matter when making the claim that the lineages are just "humans in masks". Because even the ones that currently aren't thought of in that way still actually are.