The biggest problem is that Blizzard has (incorrectly) used Race to mean multiple things. Yes, they do use it to actually mean Race (a sociological definition used to distinguish different groups of the same species), but they also use it in place of Species as well. It’s sloppy and confusing. It has lead us to this point where High Elves and Blood Elves are both the same and different “Race”, because of sloppy definitions.
Though I cannot really place full blame on Blizzard. They weren’t the first to start using “Race” incorrectly. It’s a fantasy staple, even if it is unscientific and inaccurate.