I've been just reading through this, but I'm genuinely curious what brings you to this opinion. I understand people can be inflammatory just because it's allowed. If someone walks up to your [race] character, and goes, "you're a dirty fucking [race slur] haha [race slur] [race slur] [race slur] [race slur] [race slur] kys cuz you're a [race slur]", then obviously that person isn't trying to take it seriously. That person should just be banned and not given a second chance. That shouldn't even be taking into consideration in this conversation, IMHO.
However, Vortigaunt racism/species-ism and ethnic discrimination is deeply intertwined into Willard RP. Now being racist against for example, black people, at a large scale and put into the politics of the server can feel low effort and miserable to RP with, as it feels like discrimination is just implemented to have bigotry. I actually have no issue with any of this implementation at a political level, as I think all of the discrimination feels natural and well established through other means, not just race or ethnicity or skin color.
At a smaller scale though, especially as a slummer, in a realistic setting you WILL deal with people who hate you simply because of your looks. It doesn't always have to be racism or sexism; I've seen characters be excluded because they said they had X scar or Y feature (like too big of a nose) and be discriminated for that. It's the nature of human interaction, there is a very large percentage of people who just hate because they are angry, and because they just CAN. That is amplified by the nature of being oppressed, as well.
My point is; discrimination adds a flavor of distastefulness to a character, or a way to elicit emotion from the victim of it. Yes, it can be used improperly. But if we are allowing any discrimination of characters, why stop at race, because it's taboo? I find that a disingenuous way to allow for roleplay, chiefly based off of the fact that Willard prides itself on player interaction and agency within those interactions. If someone is abusing that privilege, I am on board with removing them from the community. But as a way to enhance roleplay using unpleasant techniques? I genuinely would like to understand why you're against it.
Looking forward to your response and further discussion.