Lyxen
Great Old One
To elaborate on my "generalizations vs stereotypes" post upthread (generalization are cognitively necessary, stereotypes less so), the issue with stereotypes is that they are by definition over-generalized beliefs about a group or class of people. Positive stereotypes exist and can be useful quick reference points - similar to generalizations, but positive stereotypes are greatly outnumbered by negative stereotypes, and often go arm-in-arm with prejudices.
As a result, I think it's just best to treat stereotypes as a bad thing.
Ah yes, the (in)famous precautions principle. Well, I don't agree, "generalisation" does not mean anything, it's as general a word as can be. I want to be able to describe groups of people for my campaign, obviously in non-offensive way and with no relation to real world groups of people. What is going to happen now ? Will the word "stereotype" become a banned word on this site ?