I can see a possible consession in the "OMG, really guys? you WANT there to be homophobia and racism!? *spaz attack*" debate.
It is definitively in HUMAN nature for those things to exist, and be part of the condition.
Not necessarily so for dwarves. Likewise, dwarves clearly have VERY different neurology than humans do, given that they can drink hard liquor instead of water, every day, and not be total vegetables.
As such, expecting something that appears to be the result of an endocrine malfunction during gestation involving sex hormones to happen the same way in this different species may be a bit of a stretch, if you are going for realism.
So, having homophobia and racism in the game's humans? ABSOLUTELY. It is DEFINITIVELY part of the human condition.
Dwarven? Jury's out on that one I think. Should I think dwarves need to be this uniform, sterling white, bland vanilla flavored McCulture that never has any societal ills? Oh hell no-- How boring!
However, they might not have the same causal factors for producing homosexual individuals within their biological domain, so the numbers expected for humans may not be a good fit.
I would expect their culture to more favor asexuality in both genders, leading to population decline, as it would leave significantly more time in that dwarf's life for military or artistic/craftsmanship related pursuits, which are culturally lauded, and would thus be selected for naturally.
(You can actually see something like this happening in Japan right now, IN HUMANS, simply because of societal pressures. )
({url=http://theweek.com/article/index/254923/everything-you-need-to-know-about-japans-population-crisis] Linky[/url])
I see elves being radically more homosexual/bisexual, with strong emphasis on family and feelings--- where dwarves would be more stoic, with more emphasis on status, capabilitity, and individual strengths.
As such, I think humans should favor human statistical distributions for homosexuality, and should feature human-levels of homophobia and racism, where the other two should diverge significantly.
I am glad the values are moddable---