L+ should automatically change the words "Black" with "African American" and "White" with "Caucasian", regardless on whether it would be correct (like describing the colour of a car) or not.
And Jew/Christian/Muslim/Baha'i should be covered under a separate "religion" category, with them having some bearing on interactions for each other. So say (at risk of offending someone, which is what happens whenever you discuss this game), a Christian conservative that's more Christian then conservative might be more accepting of a Christian liberal where he would otherwise be punching out anybody else, more so then his so called fellow "Muslim Conservative", and each religion would have subtly different policies on what is considered sufficiently "liberal" or "conservative" depending on their political bent in tandem with their beliefs. So say, there's a significant amount of Muslim and Christian conservatives, and they manage to get C+? Well, both sides will argue over what is "sufficiently C+", and might possibly spark a holy civil war with each other, leading to both religions (on the conservative end, that is) becoming hostile with each other. This would add another dimension to gameplay, and would make it important to "equally represent" all religions as the LCS, lest the same thing happens to you.