And one more secret contributor:
I think you have a lot of mobility here with this idea.
IF you wanted to think really outside the box.. could be some work but man it might be refreshing and give people something to do.
What if each kingdom lets you start out as one or two races. And then you can get two subraces for each of those races at that kingdom. (or something like this)
Lets say.. Klevnone
You can start as..
A Giant
(can't think of another one for this example, but lets say starting at klevnone lets you start as a giant)
Then you can evolve via quest.. or story line quest, or something.
To Athach, Storm Giant, Water Giant, Earth Giant, Fire Giant, Cloud Giant, Colussus
(Now you could change them around if you wanted to change your rp.. maybe even be both! like.. half Cloud Giant, half Storm Giant.)
Each subrace could add some type of racial modifiers via resistance, stats, 'special attack' whatever, third arm etc.
Murkwood would have..
Elves.
you could then be a wood elf, water elf/siren, high elf, dark elf, etc..
Armengar would have..
Human
You could then go... nowhere.. but have humans have their slightly better than average attirubtes or what not.
Mesilena could have..
Undead
And from there you could go... Vampire, Skeleton, Ghost, Zombie, etc.
(infact I would go back to ARmengar and maybe make it a holier city and do.. something like 'Angel' 'Arch Angel' etc.
Tolin could have some rare quests.. that could modify races if you wanted.. or just get a specific race.
(Dragons would be amoung that, you could pick which one you wanted.. color.. and do a quest for it. Make it only for elves? or maybe even any race?)
There is a lot you could do with a system like this.. The biggest factor I would look into is how many people get sick of their race class combo? And if they could take all their customs and time and do some quests to change it up. Maybe they would stay or when they come back
They would be into a certain theme and could change it up. ETC.
The beauty of something like this is, it allows people to change their race with some kind of magical potion (why wouldn't something like that exist, in Dungeons and Dragons it does!)
You could then add... racial modifier quests as needed or event like.. Bloodplanes could offer otherworld races..
(I would also have Cherna start a fortress in BP and change BP to Blood tokens, and have it be questable and require you be bloodsworn) or something..