Removing racism in RPG's takes away a fundamental part of humanity.
Xenophobia.
Elves are usually EXTREMELY xenophobic, not wanting any contamination to their society. Most people think it's straight "Elves are white people who think they are better than everyone else!" but that's a 6th grade way of looking at it and stupid to boot. Leave that shit for the kids and come with Crazy Uncle Johnny for:
The Magical Mystical Elf
First of all, I could do science gobbledygook and talk about how elves nerve bundles are more adaptable to phasic energy and that's where they get their inherent magical boost from, but that's just faggotry you aren't interested in, just like you aren't interested in the fact that a sexually mature elven woman only menstruates once every 2.5 years with a 2,000 year life expectancy, unless she's one of those freaky moon-bathers who menstruates every 6 months and spends a third of her life in a torpid pregnancy haze.
Oh, wait, you do?
OK, let's start with some baselines...
Elves live for 2,000 years on average, taking into account disease, war, misadventure, murder, and suicide. Yes, suicide. Elves, as we know, are prone to depression outside of their homelands as everything is dying right before their eyes and the mortality of this fallen world, so far from the grace of the Gods that they knew in their younger days, wounds them to their very spirits.
Now, remember, according to Uncle Gary, and Crazy Uncle Johnny agrees, elves don't have souls, they have spirits, and this gives them a close bond with nature spirits and nature inherent.
So, why does this make them xenophobic?
Well, with an insanely low birthrate compared to the other races (even dwarven women have roughly 5.5 children per female in their 300 years of life with the outlier upper baseline of 45.75 children per couple for insane earth-lover dwarves, the fucking oversexed naked hippies) and an extremely non-diverse homogeneous society, they are particularly sensitive to anything that threatens their children. An elven child is usually helpless till roughly 5, when they have a 'growth spurt' on par with normal human growth rate, till they are roughly 13, where it all slows down.
Now, with the elven mind have short term, intermediate term, and long term memory, this affects the way they also learn. It takes, on the average, three to five times as much study for an elf to commit something to long term memory as it does for a human. This means that the 13-95 range is largely taken up by schooling, that's not counting extensive history, family and kingdom lore, heraldry, even magic and the Gods. An elf sexually matures at 105-125, and usually doesn't leave the home until they are easily 250, the original NEETs.
This means that elves are VERY focused on defending their homelands.
Due to their homogeneous society and their problems with other pantheons (The long ascendency and supremacy of the Elven pantheon led to a LOT of ancient divine grudges) mean that they are susceptible to disease. (Remember, part of the descent of the drow was due to a disease that wiped out 2/3 of all elves) Add in the fact that their homelands are often on ley lines, mana pools, and the like, they are sensitive to any disruption.
Which means that a human knocking down a henge 120 miles from the borders of the elven kingdom disrupts the ley line and causes the elves to freak the fuck out because, holy shit, their moon-bellies are currently pregnant and bathing in the manapool! DIE HUMIE!
So, disease, low birthrate, often pictures as having amazing wealth, their kingdoms being extremely static, weaker physically due to bone and muscle density, you've got a society that isn't racist because of 'HU-WYTE SURPREMEACY!", but because they are literally a people that could easily lose the entire population of a kingdom.
Shit, as you know, I could sperg about fantasy races all day. Give you a reason that the dwarves encourage non-dwarves to believe they are a dying race when their halls echo with the giggling and laughter of children and the singing of their bearded women, tell you all about why gnomes took to the sea, or why half-orcs deny BOTH gods and worship the elements, seasons, and the concept of honor and strength over the religions that rejected them over blood-guilt.
But this is too long already.