But isn't part of the issue that one person's generalization is another person's offensive stereotype?
I'm asking because I could easily say "hating tourists" could be seen as a negative stereotype, whereas the love of cheese stereotype is representative of the typical French diet and cuisine.
Taking it back to D&D for a moment: let's take my example but instead of France, your PCs go to an elven land. Does anything change? Are they still "just people" who have a hate tourists and especially Dwarven tourists, and food, dress, different turns of phrase, etc.? Does anything change considering their long lifespans, lack of sleep, or darkvision? I'm not talking radical alien mindsets, just "elves are ponderous because they think in centuries" could be viewed as either a generalization or a stereotype.
In essence, are elves, the French, and other fantastical creatures all "just people?'
(Yes, that last part was a joke).