Bedrockgames
I post in the voice of Christopher Walken
I think the ship has sailed on the originally intended meaning. People are going to draw parallels to various human ethnicities, regardless of what we do. I would rather we take a descriptive rather than prescriptive approach to the language we use in the game, so that the words we use reflect how people actually play it.
In which case, I think species or type are the best terms for what people are trying to do here (personally I don't think the ship has sailed in the general culture, but I think it has in many places online). But fair enough, if the term is too cloudy, it should at least be a term that doesn't bring us back to blood and soil concepts.