Pedantic
Legend
I believe (and of course @Steampunkette knows best and can speak for herself) the point was to demonstrate the risks of tying character power to a significant defining character trait in that way. If there's a strong mechanical incentive to pick a particular background for personal power, that undermines the background's role in providing story context, plus (especially in this case) it risks the simplifying something complicated and cheapening it thereby.Perhaps I missed something in this conversation. Is that something you would want to use "background" to rules-model? I would think that it would be something that you would just declare your character to be, and pick something else as a background.
Part of the appeal of half-orcs/half-elves was precisely that they're somewhat ambiguous symbols, which can bear a lot of allegorical meaning. I'm not sure that outweighs the downsides of a racial reading though, which are pretty clearly and profoundly bad.
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