You may think it is wrong, but a lot of people disagree with you when it comes to character customisation. I would probably agree with the following sentiment as well though I don’t really care that much.
A lot of people didn’t like the Elder Scrolls V because the race choices were mostly inconsequential. You got starting bonuses depending on your race, but it ultimately mattered little.
As a Redguard, you may have no initial bonus to magic like an Elf would, but the difference is ultimately inconsequential. Indeed, arguably the strongest NPC conjuration mage in the game is a Redguard, who is so attuned to the arcane he can accomplish feats of magic that are absolutely top-tier in the Elder Scrolls universe. So if you wanted to be a magic using Redguard that would have been a cool and unique character, not something the game stops you from doing.
And when it come to online games, in the upcoming COD ww2 you can play as a black woman on the Axis side.
Based on your stance on inclusion, you would be in favour of this, but a lot of gamers are not, not because they are racists, or uncomfortable playing as someone other than themselves, but because they have a boner for historical accuracy.
Which is the same reason fans of the Elder Scrolls want the racial characteristics to give more defined strengths and weaknesses, not because they are racists, but because they have a boner for ‘in Universe' historical accuracy.