I guess It would depend on how 'mainstream' you want to be, or how much 'mainstream appeal' you want to have. Asking the same question 30 years ago would have had a very different answer.
I would say it depends on how much you want to lean into a strong and flavored setting, or one that leverages the public psyche to some degree. Tolkien did that by leaning into Northern European myths and legends, while putting his own stamp on Elves and dwarves. I would say that Halflings (Hobbits) are the only race that is truly his. And he doesn't really claim humans, as most settings have that. I've seen plenty of settings that did not have elves, dwarves & halflings--yet still stood on their own.
For instance, if you are doing a Watership Down setting, humans can be jettisoned as well. Same with Redwall. Yet in these instances you have to lean heavily on your own setting/story and not expect the default fantasy interest to take over. Personally, I think you can do a fine fantasy setting without the usual demi-humans (Conan, GOT, and many others), but you may have to upsell if you have very unusual races that are off the beaten path, particularly if plain-jane humans are absent as well.
I would say it depends on how much you want to lean into a strong and flavored setting, or one that leverages the public psyche to some degree. Tolkien did that by leaning into Northern European myths and legends, while putting his own stamp on Elves and dwarves. I would say that Halflings (Hobbits) are the only race that is truly his. And he doesn't really claim humans, as most settings have that. I've seen plenty of settings that did not have elves, dwarves & halflings--yet still stood on their own.
For instance, if you are doing a Watership Down setting, humans can be jettisoned as well. Same with Redwall. Yet in these instances you have to lean heavily on your own setting/story and not expect the default fantasy interest to take over. Personally, I think you can do a fine fantasy setting without the usual demi-humans (Conan, GOT, and many others), but you may have to upsell if you have very unusual races that are off the beaten path, particularly if plain-jane humans are absent as well.