I would certainly agree with that assessment. As D&D is written, the races in the book are designed to be dropped as is into any campaign setting but I think that's part of the appeal of D&D. I can expect to join just about any D&D game and know what the elves, halflings, dwarves, and all the classes are all about. I can hit the ground running without having to look up a bunch of background information.From a gaming standpoint, I think the myriad races serve an important and valuable role. In some ways BECAUSE of the stereotypes: They provide a scaffold (much like Class and in 5e, Background) with which to develop a personality.