Strong agree. I really like what Pathfinder 2e did with Dwarves in the Mwangi Expanse, where they've got their own unique culture that includes Kobolds and I want to say dragons within their culture as full members. It's complex, it's detailed, it's about culture rather than species essentialism.

I always tried to make my cultures multi-species to avoid the old bad D&D trope of one species per nation. People being bound together by religion and culture instead of species, and with some people occupying very strange positions ie, a Black Dragon pirate who read too many adventure books as a kid and decided being a pirate would be lots of fun and let him collect treasure and minions. If you follow the "correct" pirate script he's very honorable and predictable, but if you don't do what he wants you to do he's a giant selfish petty warrior and magician who can and will destroy you for ruining his game. He does all the tradiational dragon stuff, but in a way that differs from just hiding in a cave and stealing cattle.

Folks are often visibly intermediate between two of the classic fantasy "races", or have very striking or obviously supernatural features while retaining the normal human statline. And most cultures just kind of roll with some things, while being bigots about others - ie it doesn't matter how many limbs you have, but green eyes are a sign of racial inferiority that invites ruthless persecution.

I think a lot of it is my training as an Anthropologist. I love and am fascinated with culture, and my idea of a cool fantasy world is one full of fantastic cultures that are clearly shaped and defined by the magic and other-worldly factors of their lives.