well FFXI had race lore and each race did in fact have home countries.
the altepa desert was the galka races home country but it was taken over by beastmen so they went to the humes home town for refuge.... and so on.
so it would not only be remeniscent of FFXI to have racial towns, but it would also be in line with ever other MMO in existance, they all have racial countries too.