To be fair D&D was never faux medieval world... it was barely faux medieval Europe. But to be clear there were places other than Europe that existed in the world during the medieval time period...
Focusing just on this one specific thing: You aren't going nearly far enough (though I'm sure you know this).
It's not only never been a faux-medieval world, it has been almost exclusively driven by provably, objectively false narratives about medieval European culture, art, knowledge/science/tech, social expectations, etc., etc. Very, very little of D&D actually resembles anything at all in human history even if you completely screen out 100% of the fantasy elements.
The idea that most people were deeply, fanatically racist and that torches-and-pitchforks would be pulled out the moment they saw something unusual? Absolutely the hell not. Plenty of medieval Europeans did trade with "Moors" (read: black Africans), Arabs, all sorts of things. One of King Arthur's knights, Feirefiz, was canonically bi-racial (albeit in a way that...reflected the rather flawed understanding of biology of medieval Europe, making a black man with a dramatic case of vitiligo, not...y'know, what an actual biracial person would look like.)
The idea that medieval Europe was drab, depressing, and almost exclusively oppressive to anyone who wasn't nobility, is equally ridiculous. Medieval Europe used all sorts of bright, colorful dyes; while being a serf wasn't great, it wasn't uniformly terrible; plenty of people weren't even serfs or nobles, but something else (e.g. guild members); trade and economics were quite important.
Huge one is simply the types of armor and weapons, which are completely, utterly ridiculous and anti-historical. Europe had cannon and handguns before it had plate armor. King Arthur would never have worn plate armor--if he ever lived, he certainly lived at least 800 years too early. The kinds of heavy armor we talk about were only popular in
Renaissance Europe. Rapiers and bucklers and all that stuff is also Renaissance, as superior metallurgy enabled such gear. Etc., etc., etc.
The "medieval" world of D&D is, and has always been, an almost-totally-constructed thing, full of completely made-up elements, actively anti-historical elements, and a patchwork of historical bits that came from across over a thousand years of IRL history. Even if you deleted every single supernatural element, it would still resemble literally no part of Earth history
ever.
Folks defending the "traditional" way D&D has done things aren't even remotely defending historical accuracy. At all. They're defending one particular fantastical approach, which is as full of completely-invented, completely-false, and ridiculously mish-mashed elements as any other approach.