Before they were too strong, arguably spec defining.
Now they’re almost inconsequential BUT there are still power disparities (like stoneskin, meld, etc.)
At this point it just makes more sense to make races purely aesthetic choices and just give everyone slots that lets you mix/match racial passives and abilities.
If you’re not pushing the top of the top content, it really doesn’t matter. Play what you like or play the race you think you have to play to complete content. It’s really that simple.
Better idea - just disable Racial abilities in Mythic Raids, M+whatever (don’t do M+ so I don’t know what level could be considered “competitive”), and Rated PVP.
The sweat lords don’t have to worry about it and the casuals can continue to enjoy their fun toys.
My proposition is players just have a load out they can swap in racial abilities/passives from the games pool. So both factions would have all available. Just tweak some naming conventions. Like Shadowmeld is now Hide or Sneaky and everyone can get it. Things like that. It’s a unanimous win for character customization and flavor.
The issue isn’t the racials themselves it was opening more classes to specific races. Shadowmeld is everywhere in PVP right now since all but two or three classes can now be nightelves.