Yaarel
🇮🇱 🇺🇦 He-Mage
Personally, I want the Players Handbook to be Human-only. Human be the only species options described.again I think we are talking about simplification here. The whole monocultural elves and dwarves thing, is usually a matter of simplification in the PHB, but something that tends to show more complexity and variety in actual settings. I don't think making general cultural statements about dwarves, elves, humans, and halflings is an issue. It is a simplification and one can argue more variety would be more realistic, but ultimately this is also a game, and a particularly simple one that abstracts a lot. But like I said there are also lots of games that do more realistic complexity and variety with culture better than D&D.
And yes you can have a variety of drwarven cultures but saying something like 'dwarves tend to live below ground and often mine' isn't that different or any worse than saying 'humans tend to live above ground and often farm or raise herds of animals'. That is just a general statement, it doesn't preclude a city like Derinkuyu from existing among humans for example, nor does it preclude dwarves from having a city like Rome.
Then each Setting Guide describes whatever other playable species are prominent in its setting. The Guide describes them according the flavor that is true for its setting. Each Guide might refer to the same Elf species with the same biological traits, but the Backgrounds for the elf-founded cultures will differ between the Guides.
Some D&D Settings will be better at avoiding reallife racism than others. We can learn from trial-and-error. Meanwhile keep the core rules of the Players Handbook as setting-neutral as possible.
I feel One D&D does well to have four core rule books:
• Players Handbook: Human-only, every rule necessary to play a complete game of D&D.
• Forgotten Realms Guide: the flavor of the FR setting, playable Nonhuman species according to FR cultures.
• DMs Guide: how to homebrew new cosmologies and worldbuilding for very different kinds of Settings, including Modern etcetera, encounter building for new adventures, magic items, and playtested variant gaming rules.
• Monster Manual: hostile encounters including traps. Possibly with FR flavor if other Settings have their own Monster flavors.
Altho the Forgotten Realms Guide is a default core, the book is self-contained and easy to swap out. It is easy to use an other Setting Guide instead, such as the Eberron Guide, the Dragonlance Guide, indy Amethyst Guide, any of the Magic the Gathering Guides, or any other Setting Guide. The Human-only Players Handbook will provide gaming rules that are as setting-neutral as possible (especially avoiding cosmology) to work seemlessly with the DMs choice of any setting. Especially the DMs Guide will encourage the DM to homebrew an entirely new setting.