I don't know how much you know about racials in WoW, but you can find racials on both sides of the spectrum there. They've done a good job with some racials, and a shitty job with others.
Racials that contribute to player power are terrible in my opinion. I don't want to have to play as a troll because their racial makes my class more efficient in combat.
On the other hand, a Goblin gets to summon a personal banker for one minute on a thirty minute cooldown. That's not going to make me more effective in a raid, but the flavor is pretty good for the race in the game, and it's a nice feature to have. Doesn't make me want to roll exclusively Goblins, but if I'm playing a Goblin character it's nice to have access to.
With reservations for how it's going to play out in Dragonflight considering the increased focus on professions, the profession related racials are also pretty good imo. Makes sense for some races to be a bit more efficient with certain professions, like a dwarf being good at blacksmithing for example.
I will say that combat-related racials in WoW are pretty minor, and don't account for a lot of DPS, but them even being there is still a problem, to me. Kind of a shitty feeling to know that you lost 1% dps because you didn't want to play as an ugly ass orc, even though it's only 1%.
Racials that contribute to player power are terrible in my opinion. I don't want to have to play as a troll because their racial makes my class more efficient in combat.
Commenting as a WoW player here, I don't work on the MMO!!!
This is kind of the problem with racials right now. There are many powerful utility racials that become essential for pushing in high M+ specifically; some players will end up race swapping on specific weeks to accomplish (very) difficult PvE content that would otherwise be impossible due to things like Stoneform. This was especially true in S2 of Shadowlands to deal with all the bleeds and poisons from the seasonal affix and from high tyrannical Plaguefall.
The problem with entirely personal utility racials is that they can sometimes be difficult to make feel impactful enough to justify using a keybind to activate them - a good example are the racials from Zandalari Trolls, where they have a slow fall, but that slow fall can't be activated by the space bar while falling like Demon Hunters and Evokers can, so you end up needing a spare bind for it and that mostly means it just doesn't get bound at all.. and passive utility racials are kinda boring.
So I mostly agree with GC here - I think racials can screw up balance pretty easily and passive ones are hard to make feel useful, so best not to bother at all