Fantasy and scifi races were (and still are) meant to be stand-ins for humans of exotic extraction.
Basically, they exist to recreate the original racist stereotypes like noble savage and exotic dancer without offending real people by saying that they're aliens/elves and that makes it okay.
I feel this reflects a very deep-seated psychological problem with people: inborn prejudice.
The belief that there are inherent differences between races isn't necessarily racism: it's racialism. Racialism only becomes racism if you believe that these differences entail that one race is superior to another (I am neither a racialist nor a racist, but I've seen Henry Louis Gates make this distinction and it seems like a good one). In D&D, racialism between humanoids is true, but--I feel that this isn't acknowledged enough--racialism between humans is untrue (unlike the Elder Scrolls videogames, where the difference between a black person and a "Nord" is equivalent to the difference between an Orc and a cat-person).I find Paizo's attempts to be inclusive rather bizarre, since D&D is founded on racism being measurably true (e.g. dwarves are genetically hardwired to be good at appraising precious metals, half-orcs are genetically stupider than humans, etc) and ethnic cleansing and crime fantasy being a common past time (e.g. breaking into the homes of goblins, orcs, gnolls and other "ugly" peoples to kill them and take their stuff).
D&D monsters aren't just fictional, they're magical--meaning they don't just lack real-world existence, they have properties that are impossible in the real world, like inherent and irredeemable evilness. I think that actually does excuse prejudice against them.Just because elves and orcs are fictional doesn't excuse prejudice against them or the racist way they're designed.
This is a weird, narrow, and overly political way to approach sci-fi and fantasy literature. The 'buggers' in Orson Scott Card's 'Ender's Game' aren't meant as stand in for any human ethnic group, much less a specific ethnic group. Racism, even particular cases of racism, is not the highest level we can discuss the problem of The Other, hatred, war, and violence at. It's an important part of the conversation, but it isn't the whole of the conversation. The Ruhml in Dickerson's 'The Alien Way' aren't a stand in for any real human racial group. Neither are the Cobbies in 'A Deepness in the Sky' intended as caricatures of any real ethnic group.
Fantasy and scifi races were (and still are) meant to be stand-ins for humans of exotic extraction. Basically, they exist to recreate the original racist stereotypes like noble savage and exotic dancer without offending real people by saying that they're aliens/elves and that makes it okay. I don't believe it does.
You cannot discriminate against fictional races. It's impossible. You can discriminate against real people.