Absolutely. A fantasy world definitely allows for that, and I understand many would rather play in a world where all that real world stuff just doesn't matter anymore, if it ever did. I'm fine playing in such worlds myself. But, its not the only school of thought, and there's nothing wrong with playing in a fantasy world where the kind of intolerance we see around the world throughout history up through today is part of life. The bulk of fantasy literature, including most of D&D, allows for or even assumes this in some cases. Because that sort of thing is so much a part of the real life history classic fantasy (and many other genres) often attempt to emulate in a fictional context, it can feel more like a real place, even with the unpleasantness. It is just as acceptable a way to build a world as the other.