Well my take on humans in my game is pretty different. They all come from different lands and they vary in looks and stats. Garthans (from a barren rock land) are tougher, bigger and their skin color goes from pale grey to dark brown. Their language is rather rough and hard to master. Every land in my world has it's own language and unique people. Basically you have to find a common language so you could communicate. The common language doesn't exist but two of the countries are well spread around the world so their languages are most popular and many know how to speak it.
As for the other things mentioned by OP, I don't find myself insulted. Reality is that a human in fantasy is actually a white man and we all know how white colonization went down in history. Also the humans weren't altered physically so they would be the norm and everyone else modeled against them. If halflings were the dominant factor in the game and the norm, humans would get a penalty on dexterity on their character creation.
As for the other things mentioned by OP, I don't find myself insulted. Reality is that a human in fantasy is actually a white man and we all know how white colonization went down in history. Also the humans weren't altered physically so they would be the norm and everyone else modeled against them. If halflings were the dominant factor in the game and the norm, humans would get a penalty on dexterity on their character creation.