Racism in dwarf fortress sounds more like it'd stem from drastically different cultures, which could affect how new entities might form.
Goblins in general are massive jerks, so even a nice one or say, an elf or human raised by them, is gonna have to deal with bullshit because of the perception of all goblins (and as a result anyone raised by them,) being absolute pricks.
Same goes for that one elf who actually doesn't care if other people chop down trees, or that dwarf who personally holds good craftsmanship in disdain - in general, elves are seen as tree fondling hippies and they have to work extremely hard to be accepted fully as dwarves (which I admit in this case I really refer to the playerbase in general, as there's few elves who enjoy open embrace by it,) and that dwarf is presumably gonna be press-ganged into a crafting job in a non-dwarven settlement because it's assumed he'll be a decent craftsman or strive to be one, even if he doesn't give two shits about making good products and would rather swing a sword or smelt ore instead.
That being said, there's nothing stopping an elf, goblin, or whatever becoming a king or queen, because they're presumably the best qualified for the job (or were able to browbeat everyone else nearby into letting them take the job,) when honestly unless raised in a given civ, it's not really likely everyone would just accept that there's an elf, goblin, hamster man or what have you suddenly in power now when dwarves have always ruled the civ.
This potentially leads to either serious pushback and the new non-dwarf leader being deposed somewhat peacefully, or to full-blown civil wars, which can lead to an entity splitting up or changing its government type, such as Party A remaining a hereditary monarchy that is strictly dwarves only in leadership, while B is a non-hereditary one that goes to the best qualified regardless of species (or simply the loudest one, take your pick.)
Those are just random examples, and won't apply so much when civs become a bit more randomized, but still.
The mention of tortue makes me imagine how justice could be dispensed in some civs, specifically via TORTURE_AS_EXAMPLE - the justice unit sets out to cause pain as restitution, and tries to break bones or tear skin instead of just generally wailing on someone like in a beating. For example, a murderer might have thier legs and arms broken, plus the isolation caused by being intraction.
Which could lead to some surreal stuff via the random generation of stuff like a despotic state that finds torture abhorrent (preferring to exile trouble-makers rather than needlessly injure people who haven't done anything damaging to the state) while there's some republic that views it as an acceptable form of punishment for serious crimes (and viewing exile as worse than torture because you separate someone from most of thier family and friends,) or a gender-egalitarian monarchy next door to a highly bigoted theocracy that views males as inferior (with both offending the sensibilities of the other in that area, but both taking umbrage with the exile and torture punishments the despot and republic have.)
My apologies for the stream of consciousness there.